The Duration of a Bond

question 3

Multiple Choice

The duration of a bond:

• A)is a weighted average of the waiting times for receiving its promised future cash flows.
• B)is a measure of how much a bond's price will increase in response to a one-basis-point decline in a bond's yield to maturity.
• C)is defined as the maturity period of the bon
• D)measures how much PV01 changes as the yield of a bond or bond portfolio changes.

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Definitions:

Cortisol

A steroid hormone released by the adrenal glands in response to stress or low blood-glucose concentration, involved in various body functions including metabolism and the immune response.

Carcinogens

Substances or exposures that are known to lead to cancer development in living tissue.

Somatic Nervous System

Part of the peripheral nervous system that is responsible for carrying motor and sensory information both to and from the central nervous system.

Sympathetic Nervous System

The part of the autonomic nervous system that prepares the body for action and stress responses.