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    Financial Institutions Management Study Set 2
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    Exam 6: Interest Rate Risk Measurement: the Duration Model
  5. Question
    With Increasing Maturity of a Fixed-Income Asset or Liability the Asset
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With Increasing Maturity of a Fixed-Income Asset or Liability the Asset

Question 72

Question 72

Multiple Choice

With increasing maturity of a fixed-income asset or liability the asset or liability's duration:


A) increases, but at a decreasing rate
B) decreases
C) increases at an increasing rate
D) increases at a constant rate

Correct Answer:

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