Effective duration:
A) estimates when embedded options will be used.
B) directly indicates how much the price of a security will change given a change in interest rates.
C) is always greater than maturity.
D) is a weighted average of the time until cash flows are received.
E) All of the above

Question

Quizplus · Accepted Answer

The Answer of Effective duration:
A) estimates when embedded options will be used.
B) directly indicates how much the price of a security will change given a change in interest rates.
C) is always greater than maturity.
D) is a weighted average of the time until cash flows are received.
E) All of the above

Effective Duration