The Volatility of a Bond Is Given by

question 59

Multiple Choice

The volatility of a bond is given by

• A)duration/(1 + yield)only.
• B)slope of the curve relating the bond price to the interest rate only.
• C)yield to maturity only.
• D)duration/(1 + yield)and slope of the curve relating the bond price to the interest rate only.

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Definitions:

Accounts Receivable

Outstanding payments from clients to a business for goods delivered or services rendered, awaiting settlement.

Accounts Payable

Money owed by a company to its creditors for goods and services that have been delivered or used but not yet paid for.

Accounts Payable

Money owed by a business to its suppliers shown as a liability on the company’s balance sheet.

Net Income

The total earnings or profit of a company after subtracting all expenses, including taxes, interest, and operating expenses, from total revenue.