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The Duration of a Bond Portfolio Is the Weighted Average

question 56

True/False

The duration of a bond portfolio is the weighted average of the durations of the individual bonds included in the portfolio.


Definitions:

Acquisition Differential

The difference between the purchase price of an acquired entity and the net of the identifiable assets acquired plus liabilities assumed.

Undervalued Inventory

A situation where the reported value of inventory is less than its actual market value, possibly affecting financial statements negatively.

Straight Line Amortization

A method of evenly spreading the cost of an intangible asset over its useful life.

Trademark

A sign, term, or expression that is legally recognized or traditionally used to denote a corporation or merchandise.

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