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

question 311

Multiple Choice

Which of the following measures the sensitivity of an 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:

Financial Account

A component of a country’s balance of payments that records transactions of foreign investment and domestic investment abroad, reflecting changes in ownership of international assets.

Financial Account

A component of a country's balance of payments that records transactions involving financial assets and liabilities between residents and non-residents over a period.

Capital Account

A national account that shows the net change in asset ownership for a nation, including assets from financial and physical capital.

Current Account

This term refers to a country's transactions with the rest of the world, including trade in goods and services, earnings on investments, and transfer payments.