The Economic Meaning of Duration Is the Interest Elasticity of a Financial

question 26

True/False

The economic meaning of duration is the interest elasticity of a financial asset's price.

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Definitions:

Waiver

The voluntary relinquishment or surrender of a known right or privilege.

Relinquishment

Relinquishment involves voluntarily giving up or surrendering a right, position, or claim, often in a legal or formal context.

Contract

A legally enforceable agreement between two or more parties that creates mutual obligations.

Commercial Impracticability

The standards used by the UCC, replacing the common law doctrine of impossibility, to define when a party is relieved of his or her contract obligations because of the occurrence of unforeseeable, external events beyond his or her control.