Duration Is a Measure of the Life of a Bond

question 55

True/False

Duration is a measure of the life of a bond on a present value basis. ​

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Definitions:

Disclosed Principal

A disclosed principal is a party whose identity is known by all involved parties at the time a transaction is entered into with an agent.

Undisclosed Principal

is a party in a contractual agreement whose existence and identity are not revealed to the third party at the time of contract formation, often in agency relationships.

Express Authorization

Directly stated or clearly indicated authority given for an action or procedure.

Principal's Intention

In a contractual agreement, it refers to the primary party's goal or objective intended through the contract.