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:

Mitochondrial Matrix

The material within the inner membrane of a mitochondrion that contains enzymes, mitochondrial DNA, and ribosomes for protein synthesis.

Endoplasmic Reticulum

A network of membranous tubules within the cytoplasm of a cell, involved in protein and lipid synthesis and transport.

Cytoplasm

The gel-like substance within a cell, excluding the nucleus, containing organelles and is the site of numerous metabolic reactions.

Citric Acid Cycle

A key metabolic pathway that combines acetyl-CoA and oxaloacetate to produce energy through the oxidation of acetyl units.