The "Modified Duration" Used by Practitioners Is Equal to ______

question 52

Multiple Choice

The "modified duration" used by practitioners is equal to ______ divided by (one plus the bond's yield to maturity) .

• A)current yield
• B)the Macaulay duration
• C)yield to call
• D)yield to maturity

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Definitions:

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as net profit divided by the cost of the investment.

Divisional Profits

The earnings generated by distinct segments or divisions within a larger company, often used to assess their financial performance.

Invested Capital

The total investment in a company by shareholders and debt holders, representing the funds used to operate and grow the business.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue.