Which of the Following Is NOT True with Respect to Duration

question 8

Multiple Choice

Which of the following is NOT true with respect to duration?

• A) All else constant,the larger is the bond's maturity,the smaller is the bond's duration.
• B) Duration has an interpretation of the bond's average life.
• C) Duration can be used to approximate the bond's price change when yields change.
• D) The duration of a zero-coupon bond is the maturity of the bond.
• E) Modified duration is the duration divided by (1 + y)where y is the bond's yield.

---

Definitions:

African People

Diverse groups of individuals originating from the African continent, characterized by a wide range of cultures, languages, and histories.

Witchcraft

The practice of magical skills, spells, and abilities, often involving the invocation of supernatural powers.

Traditional Healers Organisation (THO)

An organization that brings together practitioners of traditional medicine, who use indigenous methods for healing and wellness.

Ogbanje Child

A concept from Igbo culture referring to a child believed to be a spirit that dies and is reborn multiple times into the same family, often causing tragedy.