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.

Practice Next
×
×