The duration of an asset or a liability for which there are intervening cash flows between issue and maturity:
A)equals the asset or the liability's maturity
B)exceeds the asset or the liability's maturity
C)is smaller than the asset or the liability's maturity
D)Not enough information to answer this question

Question

Quizplus · Accepted Answer

The duration of an asset or a liability, which accounts for the time value of money and the timing of cash flows, is typically smaller than its maturity because it reflects the weighted average time until all cash flows are received or paid, not just the final payment at maturity.

The Duration of an Asset or a Liability for Which