Multiple Choice
One of the major criticisms of duration analysis is:
A) the difficulty of measuring the market rate of interest.
B) the assumption that long-term and short-term interest rates move by equal amounts.
C) the assumption that long-duration bonds are more price-sensitive than short-duration bonds.
D) None of the above
Correct Answer:

Verified
Correct Answer:
Verified
Q45: The process of measuring the effect of
Q46: Duration represents the weighted average life of
Q47: You are considering the purchase of
Q48: Weighted average life is the most representative
Q49: Assume you buy a 20-year, $1,000 par
Q51: When duration of a coupon paying bond
Q52: Duration is:<br>A)always longer than maturity.<br>B)always the same
Q53: The duration on an 8%, 25-year bond
Q54: There is an inverse relationship between interest
Q55: Duration is affected primarily by:<br>A)the maturity of