Modified Duration

question 50

Multiple Choice

Modified duration:

• A) estimates when embedded options will be used.
• B) directly indicates how much the price of a security will change given a change in interest rates.
• C) is always greater than maturity.
• D) All of the above
• E) a. and b.

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Definitions:

Old Age

A life stage characterized by advanced years, often accompanied by health decline and increased experience.

Aging

The process of becoming older, which is characterized by the gradual decline in physical and sometimes mental capacity, and the accumulation of life experiences.

Health-maintenance Approach

A strategy focusing on the prevention of illness and the maintenance of health through lifestyle practices and healthcare interventions.

Aging

The process of becoming older, a natural and inevitable phenomenon that involves several biological, psychological, and social changes.