Which of the Following Duration Analysis Is Incorrect

question 89

Multiple Choice

Which of the following duration analysis is incorrect?

• A) Duration can be used to calculate the dollar value impact of an interest rate change on the value of a security.
• B) The duration of a portfolio is the weighted duration of each asset or liability in the portfolio.
• C) A longer term bond with a higher duration than a short-term bond is faced with higher interest rate risk.
• D) Duration analysis assumes that yield curves are normal or upward sloping.

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