The Only Difference Between the Simple Weighted Average Life of a Bond

question 43

Multiple Choice

The only difference between the simple weighted average life of a bond and duration of a bond is:

• A)the timing of interest payments.
• B)that duration involves the present value of individual cash flows.
• C)that duration involves the using of the stated value of individual cash flows.
• D)None of the above

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Definitions:

Logical Flow

The orderly and coherent progression of ideas or processes, ensuring a sequence is followed logically in explanations, programming, or thought.

Numerals

Symbols used to represent numbers in a mathematical or quantitative context.

Parcel Post

A postal service for sending packages and parcels through the mail, differing in terms of weight and size regulations from regular mail services.

Accordion Fold

A method of folding paper in a zig-zag pattern, similar to the musical instrument's bellows, often used in brochures or maps.