9-53 Which of the Following Is Indicated by High Numerical

question 3

Multiple Choice

9-53 Which of the following is indicated by high numerical value of the duration of an asset?

• A)Low sensitivity of an asset price to interest rate shocks.
• B)High interest inelasticity of a bond.
• C)High sensitivity of an asset price to interest rate shocks.
• D)Lack of sensitivity of an asset price to interest rate shocks.
• E)Smaller capital loss for a given change in interest rates.