Question 104 Schweser Mock PM

Hi Guys I don’t have access to the schweser errata for the mock exam, I am writing this on my bb. How can the answer be C? Which pair of features will be MOST LIKELY to increase a bonds duration compared to an otherwise identical bond? A. Lower rating and coupn B. Higher YTM, longer maturity C. Higher Liquidity, and higher rating Thanks

Duration = Interest Rate Sensitivity Lower Rating / Coupon = Higher Interest Rate (low duration) Longer Maturity - will increase duration ; Higher YTM - will decrease duration Higher Liquidity / Rating = Low Interest Rate (Thus more “sensitive” to changes & high duration)