Duration is a measure of the life of a bond on a present value basis.

Name: Duration is a measure of the life of a bond on a present value basis.
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Question

Duration is a measure of the life of a bond on a present value basis. ​

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 (including both principal and interest payments) on a present value basis.

Duration Is a Measure of the Life of a Bond