Which of the following statements concerning duration are correct?
I. Duration is a weighted-average life of a bond.
II. The Macaulay duration considers the timing of a bond's cash flows.
III. The Macaulay duration uses the YTM of a bond to discount the cash flows.
IV. For coupon bonds, duration will be less than the actual time to maturity.
A) I, II and III only
B) II, III and IV only
C) I, III and IV only
D) I, II, III and IV
Correct Answer:
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