Which Duration Is Computed by Discounting Flows Using the Yield

question 83

Multiple Choice

Which duration is computed by discounting flows using the yield to maturity of the bond?

• A) effective duration
• B) Macaulay duration
• C) modified duration
• D) present value duration
• E) cash flow duration

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Definitions:

Title and Possession

Legal terms that refer to the ownership (title) of an asset and the control or occupation of it (possession).

Money

A medium of exchange, unit of account, and store of value that facilitates the transaction of goods and services.

Defective Furnace

A faulty heating unit that fails to operate as expected or is unsafe.

Malfunctioned

Refers to something that has failed to function properly or as expected.