Choose the true statement a Duration may not be used to determined the risk of a price change of the financial instrument due to the changes of interest rates b The higher the duration of the instrument, the lower the risk of a price change of this instrument due to the changes of interest rates c ...

The B The is duration of higher the the ins ...

Choose the true statement: a. Duration may not be used to determined the risk of a price

Fantastic news! We've Found the answer you've been seeking!

Question:

Choose the true statement:

Duration may not be used to determined the risk of a price change of the financial instrument due to the changes of interest rates

The higher the duration of the instrument, the lower the risk of a price change of this instrument due to the changes of interest rates

The higher the duration of the instrument, the greater the risk of a price change of this instrument due to the changes of interest rates

Without information about the convexity the risk of a price change of the financial instrument due to the changes of interest rates may not be evaluated.

Related Book For answer-question

Financial Accounting An Integrated Statements Approach

ISBN: 978-0324312119

2nd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

See More Books

Posted Date: Jan 11, 2021 02:18 PM

See More Questions

The following accounts have been adapted from recent financial statements of Time Warner: Accounts Receivable Accumulated Depreciation Advertising Revenues Cable Television Equipment Compact Discs...
The following accounts have normal balances. Prepare a trial balance for Kenny's Lawn Service as of September 30, 20--. Cash ........... $10,000 Accounts Receivable ...... 6,000 Supplies ..............
The following accounts have normal balances. Prepare a trial balance for Betty's Cleaning Service as of September 30, 20--. Provided below is a trial balance for Bill's Delivery Service. Use this...
Compare and contrast megaloblastic anemia caused by vitamin B12 deficiency and that caused by folic acid deficiency. (10)
(a) What are the domain and range of f? (b) What is the -intercept of the graph of f? (c) Sketch the graph of f. F(x) = ln x + 2
How do you think the growing use of telecommuters, contingent workers, and virtual teams affect HRM? How can managers improve recruiting and retention of these new kinds of employees?
This case stems from a rocky relationship between two Texans. Lawrence Shipley was the president of Shipley Do-Nut Flour & Supply Co., and Andrea Vasquez was a substitute school teacher in the...
Presented below are the trial balance and the other information related to Yorkis Perez, a consulting engineer. 1. Fees received in advance from clients $6,000.2. Services performed for clients that...
Using the list method or the switch method, find the inverse function of: f(x)=6x+1-13 f1(x) =
Newlyweds Jamie Lee and Ross have had several milestones in the past year. They are newly married, recently purchased their first home, and now have twins on the way! Jamie Lee and Ross have to...
Which of the following is the most important distinction between psychology within the cognitive and behaviorist paradigms? a. Cognitive Psychology directly investigates internal mental...
Following is information on the production levels of three different firms. Firm A is currently producing at a quantity where it is experiencing increasing returns. Firm B is currently producing at a...
Use the data and results from Exercise 5-6A to compute gross profit for the month of January for the company similar to that in Exhibit 5.8 for the four inventory methods. Data from Exercise 5-6A...
Indicate whether you agree or disagree with the following statements. Briefly explain your answers. a. Increasing returns to scale refers to a situation where an increase in a firms scale of...
Lafourche Parish, Louisiana, is the home to three crawfish farms. Thibodeaux Crawfish Farm harvests 40,000 pounds of crawfish per month at a total cost of $50,000. The Mardi Gras Mud Bug Cooperative...
Which of the following can fill in the blank to output sea lion, bald eagle? String names= Stream.of( "bald eagle", "pronghorn", "puma", "sea lion") .collect(Collectors.joining (", "));...
A constant tangential force of magnitude 50 N is applied to the edge of a merry-go-round. What is the work done by the torque due to the force, in J, by the time the merry-go-round makes two...
CRUZ, INC. Comparative Balance Sheets December 31, 2015 CRUZ, INC. Income Statement For Year Ended December 31, 2015 Required Use the indirect method to prepare the cash provided or used from...
Using the financial data shown in Exercise 2-17 for Three Rivers Realty, Inc., prepare a balance sheet as of November 30, 2007.
The telecommunications industry suffered a severe business downturn during the early part of this decade. Lucent Technologies Inc. is one of the major equipment providers to this industry. Below are...
The data necessary to adjust Socket Realty accounts from Problem 4-3A as of June 30, 2007, are as follows: a. Prepaid insurance expired during June, $280. b. Office supplies on hand at June 30, $580....
Martinez Company incurred the following costs during 2015 in connection with its research and development activities. Instructions Compute the amount to be reported as research and development...
For each of the following studies, identify the type of graph (histogram, time series graph, or scatter diagram) that would be the most appropriate. (You can use more than one graph of each type, for...
Explain the difference between artistic-related intangible assets and contract-related intangible assets.

Choose the true statement: a. Duration may not be used to determined the risk of a price

Question:

Expert Answer:

The B The is duration of higher the the ins... View the full answer

Financial Accounting An Integrated Statements Approach

Students also viewed these accounting questions