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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Definitions:

Performance

The act of carrying out or accomplishing tasks, measured against preset known standards of accuracy, completeness, and speed.

Rewards

Benefits, compensation, or other forms of recognition provided to individuals or groups for their performance and achievements.

Reward Power

The ability of an individual to influence the actions of others by offering or withholding rewards.

Jay Conger

A management theorist known for his work on leadership, influence, and negotiation within organizational settings.