Which of the Following Statements Concerning Duration Are Correct

question 51

Multiple Choice

Which of the following statements concerning duration are correct?
I. Duration is a weighted-average life of a bond.
II. The Macaulay duration considers the timing of a bond's cash flows.
III. The Macaulay duration uses the YTM of a bond to discount the cash flows.
IV. For coupon bonds, duration will be less than the actual time to maturity.

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

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