Which Is the More Precise Measurement of Bond Price Sensitivity

question 19

Multiple Choice

Which is the more precise measurement of bond price sensitivity?

• A) Convexity
• B) Duration
• C) Maturity
• D) Yield

---

Definitions:

Credit

An arrangement whereby goods, services, or money is received in exchange for a promise to pay back a definite sum of money at a future date.

Supplies

Items used in the operations of a business, often consumable, such as office supplies or factory supplies, not directly part of the finished product.

Notes Payable

A financial obligation represented by a written promise to pay a certain amount of money at a future date or dates, typically carrying interest.

Historical Cost Principle

A financial reporting rule mandating that assets are documented and presented at their initial acquisition price.