Which of the following statements best describes empirical duration? A. A common way to calculate a bonds

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Which of the following statements best describes empirical duration?

A. A common way to calculate a bond’s empirical duration is to run a regression of its price returns on changes in a benchmark interest rate.

B. A bond’s empirical duration tends to be larger than its effective duration.

C. The price sensitivity of high-yield bonds to interest rate changes is typically higher than that of investment-grade bonds.

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Related Book For  answer-question

Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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