Question: Duration is: Multiple Choice the elasticity of a security ' s value to small coupon changes. the weighted average time to maturity of the bond's

Duration is:
Multiple Choice
the elasticity of a security's value to small coupon changes.
the weighted average time to maturity of the bond's cash flows.
the time until the investor recovers the price of the bond in today's dollars.
greater than maturity for deep discount bonds and less than maturity for premium bonds.
the second derivative of the bond price formula with respect to the yield to maturity.
8 of 10
Next
 Duration is: Multiple Choice the elasticity of a security's value to

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!