Which of the Following Is NOT True About Duration

question 6

Multiple Choice

Which of the following is NOT true about duration?

• A) It equals the years-to-maturity for a zero coupon bond
• B) It equals the weighted average of payment times for a bond, where weights are proportional to the present value of payments
• C) Equals the weighted average of individual bond durations for a portfolio, where weights are proportional to the present value of bond prices
• D) The prices of two bonds with the same duration change by the same percentage amount when interest rate move up by 100 basis points

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