Recommendations & StrategiesQuestion 66 of 100
Duration is used to estimate a bond's:
a.Price sensitivity to changes in interest rates
b.Credit rating
c.Coupon payment date
d.Callability
Explanation
Duration measures the sensitivity of a bond's price to interest-rate changes; longer duration implies greater price movement for a given rate shift. It helps advisers manage interest-rate risk. It is distinct from credit quality or call features.
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