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Duration Represents the Weighted Average Life of a Bond Where

Question 47

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

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