Which of the Following Measures the Sensitivity of the Asset's

question 55

Multiple Choice

Which of the following measures the sensitivity of the asset's price to interest rate movements, expressed as a number of years?

• A) Duration
• B) Yield to maturity
• C) Convexity
• D) Immunization

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Definitions:

Good Faith Purchaser

A purchaser who buys without notice of any circumstance that would put a person of ordinary prudence on inquiry as to whether the seller has valid title to the goods being sold.

Title

Legal documentation that provides evidence of a person's ownership rights over property or assets.

Void

Describes a contract or legal agreement that has no legal force or effect, making it unenforceable.

Good Title

Legal term indicating that a property owner has rightful ownership and is legally free of liens or other encumbrances.