Question
QUESTION 58 Which of the following statements is correct about duration? a. Duration will always be less than the maturity for a bond. b. The
QUESTION 58
Which of the following statements is correct about duration?
a. Duration will always be less than the maturity for a bond.
b. The duration of a bond increases as YTM increases.
c. Modified duration is a precise measure of the change in the price of a bond based on a change in interest rates.
d. The duration of a portfolio equals the sum of the weighting of each portfolio component multiplied by its duration.
10 points
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss
8th Canadian Edition
01259270114, 9781259270116
