As Applied to Bonds, Duration Refers to

question 14

Multiple Choice

As applied to bonds, duration refers to

• A) the average maturity of a diversified portfolio of corporate bonds.
• B) the point in the life of a bond when its price exactly offsets its reinvestment risk.
• C) the average price and annual reinvestment rate of return for a bond.
• D) the point in the life of a bond when its yield-to-maturity equals its expected yield.

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Definitions:

Obstructionist Strategy

Avoids social responsibility and reflects mainly economic priorities.

Discretionary Responsibilities

Responsibilities in a job that allow an employee to make decisions and judgements without needing prior approval.

Economic Responsibility

The obligation of organizations to make decisions that positively impact the economic environment in which they operate, including considerations of sustainability and ethical business practices.

Socially Responsible Corporate Behaviour

Acts by businesses that go beyond economic and legal expectations to positively impact society and the environment.