Duration Measures

question 45

Multiple Choice

Duration measures

• A) weighted-average time until a bond's half-life.
• B) weighted-average time until cash flow payment.
• C) the time required to make excessive profit from the investment.
• D) weighted-average time until a bond's half-life and the time required to make excessive profit from the investment.
• E) weighted-average time until cash flow payment and the time required to make excessive profit from the investment.

---

Definitions:

Real Solutions

The set of all real numbers that satisfy an equation.

Quadratic Equation

An equation of the form ax^2 + bx + c = 0, where a, b, and c are constants, and a ≠ 0.

Square Root Property

A principle that relates the square of a number to its square root, often used to solve equations.

Square Root Property

A principle that states if \(x^2 = n\), then \(x\) is equal to the positive or negative square root of \(n\).