Duration Measures

question 78

Multiple Choice

Duration measures

• A)weighted average time until a bond's half-life.
• B)weighted average time until cash flow payment.
• C)the time required to make excessive profit from the investment.
• D)A and C.
• E)B and C.

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Definitions:

Accounting Period

The time frame covered by the financial statements of a company, typically a fiscal year or quarter, used to calculate earnings and track financial performance.

Dividends Account

An account used to record the distribution of a portion of a company's earnings to its shareholders.

Revenue Accounts

Accounts that track the income a company generates from its normal business activities, typically from the sale of goods and services to customers.

Fees Earned

Revenue generated from services provided or work performed, often used in the context of professional services like legal or consulting firms.