Duration is a measure of:
A) the yield to maturity of a bond.
B) the coupon yield of a bond.
C) the price of a bond.
D) the effective maturity of a bond.

Question

Quizplus · Accepted Answer

Duration measures the sensitivity of a bond's price to changes in interest rates, effectively representing the weighted average time it takes to receive all cash flows from the bond, thus acting as a measure of the bond's effective maturity.

Duration Is a Measure Of