The duration of a bond:
A) is a weighted average of the waiting times for receiving its promised future cash flows.
B) is a measure of how much a bond's price will increase in response to a one-basis-point decline in a bond's yield to maturity.
C) is defined as the maturity period of the bon
D) measures how much PV01 changes as the yield of a bond or bond portfolio changes.
Correct Answer:
Verified
Q8: _ is defined as the sensitivity of
Q9: _ sets a target value for the
Q10: Which of the following is true of
Q11: A bond position has a PV01 of
Q12: What is contingent immunization?
Q14: Assuming market value and PV01 constant,which of
Q15: Convexity is:
A)a measure that determines how secure
Q16: Explain effective duration.
Q17: Explain the practical issues to be considered
Q18: Which of the following is an assumption
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