A Relatively High Numerical Value of the Duration of an Asset

question 124

Multiple Choice

A relatively high numerical value of the duration of an asset means which of the following?

• A)Low sensitivity of an asset price to interest rate shocks.
• B)High interest inelasticity of a bond.
• C)High sensitivity of an asset price to interest rate shocks.
• D)Lack of sensitivity of an asset price to interest rate shocks.

---

Definitions:

Major Vein

A large blood vessel that carries blood towards the heart from various parts of the body, essential for the circulatory system.

Legs

Limbs on the lower part of the body, enabling movement and support of an individual's weight.

Aortic Semilunar

Relating to the semilunar valve located between the left ventricle of the heart and the aorta, regulating blood flow.

Aorta

The largest artery in the body, carrying oxygen-rich blood from the heart to various parts of the body.