The economic interpretation of duration is
A) the percentage of the current market price of a security that is accounted for by the book value of the security.
B) the interest elasticity of a security to a small change in interest rates.
C) the maturity elasticity of a security to a small change in cash flows of the security.
D) the price elasticity of a security to a small change in interest rates.
Correct Answer:
Verified
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