Duration is a measure of bond price sensitivity.

Name: Duration is a measure of bond price sensitivity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Duration is a measure of bond price sensitivity to changes in interest rates. As interest rates change, the price of a bond will also change. The duration of a bond measures how much the bond's price will change in response to a change in interest rates. A higher duration indicates a greater sensitivity to interest rate changes. Therefore, the statement is true.

Duration Is a Measure of Bond Price Sensitivity