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

Question

Quizplus · Accepted Answer

Duration is a measure of the effective maturity of a bond, taking into account both the time until the bond's face value is repaid and the timing of its coupon payments. It is also used to estimate the sensitivity of a bond's price to changes in interest rates.

Duration Is a Measure of The