Duration Is Used Primarily as a Measure Of

question 21

Multiple Choice

Duration is used primarily as a measure of:

• A)the relationship between coupon rate and bond rating.
• B)bond price-sensitivity to interest rate changes.
• C)the present value of investment inflows.
• D)None of the above

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Definitions:

Rights Offering

A financial opportunity offered to a company's existing shareholders to purchase additional shares directly from the company at a predetermined price, usually at a discount, within a specified period.