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:

Customer Profile

A detailed description of a business's typical or ideal customer, including demographic, psychographic, and behavior characteristics.

Smart

Exhibiting intelligence and quickness in learning or understanding; often used to describe clever or innovative features of products or services.

Achievable

Describes goals or objectives that are realistic and can be accomplished within a given timeframe.

Customer Benefit Plan

A strategy or program designed to provide value to customers, beyond the basic product or service, to enhance their satisfaction and loyalty.