Duration is a direct measure of the interest rate sensitivity of an asset or liability, which means that:
A) the smaller the duration, the more sensitive the price of that asset or liability
B) the larger the duration, the less sensitive the price of that asset or liability
C) the larger the duration, the more sensitive the price of that asset or liability
D) None of the listed options are correct.
Correct Answer:
Verified
Q1: Duration is defined as:
A)the weighted-average time to
Q3: Suppose the yield of five-year bond with
Q4: Immunising the balance sheet to protect equity
Q5: The duration of an asset or a
Q6: The larger an FI's absolute leverage adjusted
Q7: With increasing maturity of a fixed-income asset
Q8: The duration of a zero-coupon bond:
A)is smaller
Q9: The statement that a portfolio is immunised
Q10: Which of the following statements most appropriately
Q11: Duration is seen as a more complete
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents