As Applied to Bonds, Duration Refers to

question 82

Multiple Choice

As applied to bonds, duration refers to

• A) the average price and annual reinvestment rate of return for a bond.
• B) the average maturity of a diversified portfolio of corporate bonds.
• C) the point in the life of a bond when its yield- to- maturity equals its expected yield.
• D) the point in the life of a bond when its price exactly offsets its reinvestment risk.

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