All Other Things Equal, a Bond's Duration Is ________

question 24

Multiple Choice

All other things equal, a bond's duration is ________.

• A) higher when the yield to maturity is higher
• B) lower when the yield to maturity is higher
• C) the same at all yield rates
• D) indeterminable when the yield to maturity is high

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Definitions:

Activity-based Costing

An accounting method that assigns costs to products or services based on the resources they consume.

Activity-based Costing

A method of accounting where costs are assigned to products or services based on the activities needed for their production.

Activity-based Costing

A costing methodology that assigns overhead and indirect costs to related products and services based on the actual consumption of each activity.

Manufacturing Overhead

All indirect costs associated with the production process, including costs of materials, utilities, and maintenance that are not directly associated with the manufacturing of a specific product.