Duration is seen as a more complete measure of an asset or a liability's interest rate sensitivity than maturity because it takes into account the:
A)size of cash flows
B)timing of cash flows
C)size of cash flows and the asset or liability's time to maturity
D)time of arrival of all cash flows plus the asset or liability's maturity

Question

Quizplus · Accepted Answer

The Answer of Duration is seen as a more complete measure of an asset or a liability's interest rate sensitivity than maturity because it takes into account the:
A)size of cash flows
B)timing of cash flows
C)size of cash flows and the asset or liability's time to maturity
D)time of arrival of all cash flows plus the asset or liability's maturity

Duration Is Seen as a More Complete Measure of an Asset