The sensitivity of a bond's price to a change in interest rates is known as:
A) principal.
B) yield.
C) duration.
D) coupon.
Correct Answer:
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Q11: The duration of a coupon bond_ at
Q12: The weighted average of the squares of
Q13: Kirkwood and Idil (2009) noted that, prior
Q14: Insulating a portfolio from the effects of
Q15: Duration_ as the yield _.
A) increases; increases
B)
Q17: As the term of the security increases,
Q18: 'Duration' refers to:
A) the period of time
Q19: The convexity (CX) of a ZCB is
Q20: The prices of the securities are more
Q21: The cover ratio needs to be higher
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