We Can Think of Duration as the Slope of a Line

question 39

Multiple Choice

We can think of duration as the slope of a line that is tangent to the convex:

• A)price-yield curve at the expected future price and expected yield of the bond.
• B)price-yield curve at the current price and expected yield of the bond.
• C)price-yield curve at the current price of the bond.
• D)price-yield curve at the current price and yield of the bond.

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Definitions:

Retroactive Interference

A phenomenon where newly learned information interferes with the recall of previously learned information.

Recall

The act of recalling information from previous experiences.

New Information

Refers to data or knowledge received or discovered which was previously unknown, often changing understanding or perspective.

Fifth-grade Teacher

A teacher specialized in educating students who are typically in the fifth grade, around 10-11 years old.