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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
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. |
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