Multiple Choice
Duration represents the weighted average life of a bond where the weights are based on the:
A) future value of the individual cash flows relative to the present value of the total cash flows.
B) present value of the individual cash flows relative to the future value of the individual cash flows.
C) present value of the individual cash flows relative to the present value of the total individual cash flows.
D) future value of the individual cash flows relative to the future value of the individual cash flows.
Correct Answer:
Verified
Correct Answer:
Verified
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