As Applied to Bonds, Duration Refers to

question 42

Multiple Choice

As applied to bonds, duration refers to

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