Duration represents the weighted average life of a bond where the weights are based on the:
A) future value of the individual cash flows relative to the present value of the total cash flows.
B) present value of the individual cash flows relative to the future value of the individual cash flows.
C) present value of the individual cash flows relative to the present value of the total individual cash flows.
D) future value of the individual cash flows relative to the future value of the individual cash flows.
Correct Answer:
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Q49: Duration is:
A)positively correlated with interest rates and
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Q52: Duration is influenced by everything except:
A)maturity.
B)market rate
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Q55: You have invested $1,000 in a 12%
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