The Duration of Securities Can Be Used to Estimate Their

question 90

Multiple Choice

The duration of securities can be used to estimate their sensitivity to:

• A) default risk.
• B) holding period yields.
• C) interest rate risk.
• D) reinvestment risk.

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Definitions:

Marginal Benefit

The bonus satisfaction or benefit gained by consuming one more unit of a good or service.

Marginal Social Benefit

The additional benefit to society from consuming one more unit of a good or service.

Street Cleanings

Municipality-provided services that remove dirt, litter, and debris from roads and public spaces to maintain cleanliness and sanitation.

Increases

Situations where there is a rise in the level, amount, or number of a certain variable or condition.