9-21 The value for duration describes the percentage increase in the price of an asset for a given increase in the required yield or interest rate.

Name: 9-21 The value for duration describes the percentage increase in the price of an asset for a given increase in the required yield or interest rate.
Brand: Quizplus
Rating: 4.9 (38 reviews)

Question

Quizplus · Accepted Answer

Duration measures the sensitivity of the price of a bond to changes in interest rates, not the percentage increase in price. It indicates the percentage change in price for a 1% change in yield.

9-21 the Value for Duration Describes the Percentage Increase in the Price