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Duration is A) the elasticity of a security's value to small coupon changes. B) the elasticity of a security's value to market interest rate changes.
Duration is
A) the elasticity of a security's value to small coupon changes. | ||
B) the elasticity of a security's value to market interest rate changes. | ||
C) the time until the investor recovers the price of the bond in today's dollars | ||
D) higher for high coupon bonds and lower for low coupon bonds, all else being equal | ||
E) the second derivative of the bond price formula with respect to the YTM |
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