Duration Is a Useful Measure of Interest Rate Risk Because

question 127

True/False

Duration is a useful measure of interest rate risk because it incorporates a bond's coupon rate.

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Definitions:

Sleeper Effect

A delayed increase in the impact of a message that occurs when an initially discounted message becomes effective, as the reason for discounting it is forgotten.

Phenomenon

An observable event or fact, especially one that is significant, unusual, or extraordinary.

Message

is a piece of information or communication conveyed from one person to another, either verbally, written, or through another medium.

Source

The person or group communicating a message.