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      Question

      The average time until the cash flows on the bond is

      received:
      A Convexity Correct Answer Incorrect Answer
      B Duration Correct Answer Incorrect Answer
      C Option Correct Answer Incorrect Answer
      D Yield to maturity Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      Duration is defined as the average time it takes to receive all the cash flows of a bond, weighted by the present value of each of the cash flows.

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