The Term Duration Was First Used in 1938 by Frederick

question 30

True/False

The term duration was first used in 1938 by Frederick Macaulay as a measure of the weighted average time to maturity of a bond.

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Definitions:

Deductibility

The eligibility of an expense to be subtracted from gross income to reduce taxable income.

Pension Plans

Financial arrangements designed to provide individuals with an income during retirement, funded by either the employer, the employee, or both.

Income Tax Purposes

The specific calculations and methods used to determine taxable income and tax liabilities according to the regulations set by tax authorities.

Pension Plan

A pension scheme in which an employer is obliged to contribute to a fund allocated for an employee's future benefit.