Duration Is Used Primarily as a Measure Of

question 21

Multiple Choice

Duration is used primarily as a measure of:

• A)the relationship between coupon rate and bond rating.
• B)bond price-sensitivity to interest rate changes.
• C)the present value of investment inflows.
• D)None of the above

---

Definitions:

Divestiture

The process of selling an asset or subsidiary by a company to optimize its portfolio or raise funds.

Strategic Thinking

The process of planning for the future by analyzing current trends, making predictions, and devising plans to achieve long-term objectives.

Purchase Method

An accounting technique used to consolidate the financial statements of two companies when one company acquires another.

Total Assets

The sum of all assets owned by a company, including cash, investments, property, and equipment, representing the total resources available for use in its operations.