Which of the Following Is NOT a Property of Macaulay's

question 9

Multiple Choice

Which of the following is NOT a property of Macaulay's duration?

• A) All else the same, the longer a bond's maturity, the longer is its duration.
• B) All else the same, a bond's duration increases at a decreasing rate as maturity lengthens.
• C) All else the same, the higher a bond's coupon, the shorter is its duration.
• D) All else the same, a higher yield to maturity implies a shorter duration, and a lower yield to maturity implies a longer duration.
• E) Answers A to D are all true.

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Definitions:

Babinski Sign

A reflex action in which the big toe remains extended or extends itself when the sole of the foot is stimulated, indicative of neurological disorder.

Plantar Reflex

A neurological reflex elicited by stroking the sole of the foot, observed for the direction of toe movement.

Flexion

A movement that decreases the angle between two body parts, such as bending the elbow or knee.

Triceps Reflex

A deep tendon reflex tested by striking the triceps tendon, located just above the elbow, to assess the spinal cord's response function in the neck area.