When Yield Swings Are Relatively Small, a Bond's Duration Is

question 43

True/False

When yield swings are relatively small, a bond's duration is a viable predictor of its price volatility.

---

Definitions:

Full Performance

The complete fulfillment of all terms and obligations specified within a contract, leading to its termination upon satisfactory execution by all parties involved.

Bilateral Contract

A contractual agreement involving two parties where each promises to perform an act in exchange for the other's act, with mutual obligations binding both parties.

Promised Offer

An offer made by one party to another indicating a willingness to enter into a contract under specified terms.

UCC

The Uniform Commercial Code is an extensive collection of statutes that regulate all business dealings within the United States.