The Duration of a Bond Portfolio Is the Weighted Average

question 72

True/False

The duration of a bond portfolio is the weighted average of the maturities of the individual bonds included in the portfolio.

---

Definitions:

Net Realizable Value

The estimated selling price of goods minus any costs associated with their sale or disposal.

Merchandise

Goods that are bought and sold in the course of business, often referred to in the context of retail or wholesale trading.

Lower of Cost or Market

An accounting principle stating that inventory should be recorded at either its historical cost or its market value, whichever is lower.

Inventory

Items such as raw materials, work-in-progress, and finished goods that a company holds for the purpose of sale in the ordinary course of business.