Duration Is a Measure Of

question 12

Multiple Choice

Duration is a measure of:

• A) the yield to maturity of a bond.
• B) the coupon yield of a bond.
• C) the price of a bond.
• D) the effective maturity of a bond.

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Definitions:

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs associated with making and selling the product, calculated as net income divided by revenue.

Projected Addition

Projected addition refers to the estimated increase or expansion in a company's assets, revenues, or capabilities, based on future plans or investments.

Debt-Equity Ratio

An indicator that specifies the proportional role of shareholders' equity and debt in asset funding.

Dividend Payout Ratio

The fraction of earnings a firm pays out to its shareholders in the form of dividends, expressed as a percentage of the company's total earnings.