Multiple Choice
Suppose the duration of a bond portfolio is 2. This means
A) The final cash flow from the portfolio will occur in two years.
B) The weighted-average maturity of the portfolio's cash flows is 2 years.
C) The portfolio is fully equivalent to a 2-year zero-coupon bond.
D) The portfolio is fully equivalent to a 2-year par-coupon bond.
Correct Answer:
Verified
Correct Answer:
Verified
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