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).

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Definitions:

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Hypothetical resources that are abundantly available and do not deplete, regardless of how much is consumed.

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