Explain the Basic Concept of Bond Duration and Why This

question 83

Essay

Explain the basic concept of bond duration and why this measure is meaningful to investors.

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Definitions:

United States

A country in North America comprising 50 states, a federal district, five major self-governing territories, and various possessions, known for its large economy and diverse population.

Tax Rate Structure

Tax Rate Structure refers to the system of taxing income, property, goods, or transactions at different rates, based on the amount, value, or type.

Tax Base

The total amount of assets or income that can be taxed by a government, forming the foundation for calculating taxes to be levied.

Payroll Taxes

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.