Duration is a measure of:
A)a bond's yield sensitivity.
B)a bond's term to maturity.
C)the length of time it takes to get back the original investment.
D)the bond price sensitivity to a change in interest rate.

Question

Quizplus · Accepted Answer

Duration measures the bond price sensitivity to changes in interest rates, indicating how much the price of a bond is expected to fluctuate when interest rates change.

Duration Is a Measure Of