Duration Is

question 23

Multiple Choice

Duration is

• A)an asset's term to maturity.
• B)the time until the next interest payment for a coupon bond.
• C)the average lifetime of a debt security's stream of payments.
• D)the time between interest payments for a coupon bond.

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variability within a dataset, indicating how spread out the data points are from the mean.

Hours

A unit of time equal to 60 minutes.

Computers

Electronic devices that can store, retrieve, and process data, and execute programmed instructions.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.