In General, Duration Is the Number of Years, on a Future-Value

question 4

True/False

In general, duration is the number of years, on a future-value basis, that it takes to recover an initial investment in a bond.

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Definitions:

Bad Debts

Amounts owed to a company that are considered uncollectible, typically due to the debtor's inability to pay.

Factoring Commissions

Factoring commissions are fees paid to a factor, or financial intermediary, for advancing funds to a business by purchasing its accounts receivable.

Accounts Receivable

Amounts owed to a business by its customers for goods or services delivered or used but not yet paid for.

Loss

The result when a company's expenses exceed its revenues during a specific period of time.