Which Duration Is Computed by Discounting Flows Using the Yield

question 81

Multiple Choice

Which duration is computed by discounting flows using the yield to maturity of the bond?

• A) Effective
• B) Macaulay Duration
• C) Modified Duration
• D) Present Value Duration
• E) Cash Flow Duration

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Definitions:

Inborn Features

Traits or characteristics present in an individual from birth, resulting from genetic inheritance.

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for rest and digestion, counterbalancing the sympathetic nervous system's fight or flight response.

Somatic Nervous System

The part of the peripheral nervous system that handles voluntary control of body movements through control of skeletal muscles.

Sympathetic Nervous System

Part of the autonomic nervous system that activates the body's "fight or flight" response to stress or perceived threats.