Which One of the Following Statements Is Correct Concerning Macaulay

question 99

Multiple Choice

Which one of the following statements is correct concerning Macaulay duration?

• A)The duration of a zero coupon bond is equal to the time to maturity.
• B)Most bonds have durations in excess of 15 years.
• C)The duration of a coupon bond is a linear function between the time to maturity and the duration.
• D)The duration of a coupon bond is greater than that of a zero coupon bond given equal maturity dates.
• E)The percentage change in a bond's price is approximately equal to the change in the yield to maturity multiplied by (−1 × Macaulay duration).

---

Definitions:

Conversion Disorder

A mental condition where patients experience neurological symptoms, such as blindness or paralysis, without a physical cause, often as a response to psychological stress.

Medical Diseases

Conditions that affect the body's structures or functions and are typically characterized by specific signs and symptoms, often with a known cause.

Sensory Functions

The physiological capacities of organisms that provide data for perception, including sight, hearing, touch, taste, and smell.

Conversion Disorder

A mental condition where psychological stress is expressed through physical symptoms that cannot be explained by medical condition.