Which One of the Following Is the Preferred Method of Evaluating

question 87

Multiple Choice

Which one of the following is the preferred method of evaluating interest rate risk on mortgage bonds?

• A)PSA rating
• B)modified duration
• C)Macaulay duration
• D)effective duration
• E)postponed duration

---

Definitions:

West Bank

A territory located in the Middle East, bordered by Israel and Jordan, known for its central role in the ongoing Israeli-Palestinian conflict.

General Adaptation Syndrome (GAS)

A model describing the body's short-term and long-term reactions to stress, introduced by Hans Selye, which consists of three stages: alarm, resistance, and exhaustion.

Hans Selye

A pioneering scientist known for his research on stress and the development of the general adaptation syndrome theory.

General Adaptation Syndrome (GAS)

A theoretical model describing the body's short-term and long-term reactions to stress, characterized by stages of alarm, resistance, and exhaustion.