Which of the Following Will Affect a Bond's Macaulay Duration

question 104

Multiple Choice

Which of the following will affect a bond's Macaulay duration?
I. The current yield to maturity.
II. The coupon rate.
III. The maturity.

• A) II only
• B) II and III only
• C) I and III only
• D) III only
• E) I, II, and III

---

Definitions:

Nonmonetary Exchange

Transactions in which businesses or individuals trade goods or services without the use of money or monetary units.

Fair Value

Fair value is the estimated price at which an asset or liability could be traded in a fair and open market transaction, reflecting its current market value.

Cost Base

The total amount of investment in an asset, used for tax purposes to determine capital gains or losses upon disposal.

Long-Lived Asset

Assets of a company that provide value for more than one fiscal year, such as buildings, machinery, and equipment.