Which Form of Duration Should Be Used When Evaluating a Floating-Rate

question 18

Multiple Choice

Which form of duration should be used when evaluating a floating-rate bond?

• A) Macaulay duration
• B) Modified duration
• C) Effective duration
• D) Convexity duration

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Definitions:

Affiliation Needs

The human desire to belong to groups or to be associated with others, often for support or shared identity.

Power Needs

Power needs refer to the psychological need some individuals feel to control or influence others.

Thematic Apperception Test (TAT)

A projective psychological test that uses ambiguous pictures to elicit stories from individuals, revealing their underlying motives, feelings, and attitudes.

Achievement Motivation

The desire to accomplish and excel in tasks through persistence and effort, often driven by an individual's goals and aspirations.