Duration Is

question 37

Multiple Choice

Duration is

• A)the elasticity of a security's value to small coupon changes.
• B)the weighted average time to maturity of the bond's cash flows.
• C)the time until the investor recovers the price of the bond in today's dollars.
• D)greater than maturity for deep discount bonds and less than maturity for premium bonds.
• E)the second derivative of the bond price formula with respect to the YTM.

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Definitions:

Demographic Segmentation

The process of dividing a market into segments based on demographic factors such as age, gender, income, education, and family size.

Geodemographic Segmentation

The process of dividing a market into smaller groups based on geographic location and demographic characteristics for targeted marketing strategies.

Psychographic Segmentation

The division of a market into different segments based on consumers' personality traits, values, attitudes, interests, and lifestyles.

Benefit Segmentation

A strategy in marketing that categorizes a market into various segments, focusing on the distinct advantages customers look for in a product.