Which One of the Following Statements Is Correct Concerning Macaulay

question 99

Multiple Choice

Which one of the following statements is correct concerning Macaulay duration?

• A)The duration of a zero coupon bond is equal to the time to maturity.
• B)Most bonds have durations in excess of 15 years.
• C)The duration of a coupon bond is a linear function between the time to maturity and the duration.
• D)The duration of a coupon bond is greater than that of a zero coupon bond given equal maturity dates.
• E)The percentage change in a bond's price is approximately equal to the change in the yield to maturity multiplied by (−1 × Macaulay duration).

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Definitions:

Behaviorist Perspective

A theory of learning based on the idea that all behaviors are acquired through conditioning, emphasizing observable behaviors over internal states.

Learning Perspective

A psychological approach that emphasizes the role of environmental influences on observable behavior.

Biological Perspective

An approach in psychology that examines psychological issues through the lens of biological processes, including genetics and brain functions.

Social Psychologists

Scientists who study how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.