Which of the Following Statements About Duration Is True

question 80

Multiple Choice

Which of the following statements about duration is true?

• A) Duration is the length of time necessary to pay back the investor's original investment.
• B) The duration of a bond is some time longer than the maturity of the bond.
• C) Duration is the investment period necessary to offset price risk and reinvestment risk.
• D) A bond sold at the duration point will always be priced at $1,000.

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Definitions:

Unofficial Report

A document or account not formally released by an authoritative source, often lacking official endorsement or validation.

Civil Case

A legal dispute between two or more parties where the plaintiff seeks compensation or remedy for damages caused by the defendant's actions.

Coercive Action

Measures taken to force someone to act in a certain way by using threats, pressure, or the imposition of penalties.

Remedy

A means of legal reparation, correction, or enforcement obtained through judicial process to address a wrong or enforce a right.