Investment VehiclesCâu 19 / 110
Duration is best described as a measure of which of the following?
a.The number of years until a bond matures, exactly
b.A bond's price sensitivity to changes in interest rates
c.The bond's credit rating quality
d.The total coupon income a bond will pay
Giải thích
Duration measures how sensitive a bond's price is to interest rate changes; a longer duration means greater price movement for a given rate change. It is expressed in years but is not simply the maturity. Credit quality and total coupon income are separate concepts.
Luyện miễn phí toàn bộ 110 câu hỏi — không cần đăng ký.
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Đội Ngũ Biên Tập PrepPass · Đối chiếu với NASAA Series 65 Investment Adviser Law Exam · Quy trình kiểm tra