As applied to bonds, duration refers to
A) the average maturity of a diversified portfolio of corporate bonds.
B) the point in the life of a bond when its price risk exactly offsets its reinvestment risk.
C) the average price and annual reinvestment rate of return for a bond.
D) the point in the life of a bond when its yield-to-maturity equals its expected yield.
Answer: B
You might also like to view...
Which of the following should be true for a skimming price to be successful?
A) Target consumers should be price sensitive. B) Supply should exceed demand. C) Demand must be stabilizing. D) The producer should use intensive distribution. E) There should be little chance that competitors can quickly enter the market.
Which of the following is true about convenience stores?
A) They carry mostly shopping goods. B) They charge lower-than-normal prices for shopping goods. C) They are reluctant to change their store designs and offerings to adjust to changes in the market. D) They create time utility for their customers. E) They create form, time, and place utility for their customers.
In human resource forecasting, ______ is a process of reviewing historical items such as revenues and relating changes in those items to some business factor to form a predictive chart.
A. trend analysis B. regression analysis C. mediation analysis D. quantitative forecast
Kaye Corporation agreed to lease a computer, at cost, to Lumbar Company for $36,000 payable each year-end for seven years without a bargain purchase option, or, as an equivalent alternative, for $33,000 per year with a bargain purchase option, after the seventh rental. If the lease is a direct financing lease, and Kaye expects to earn a 1 . percent return, the amount of cash Lumbar Company would
need to pay for the bargain purchase option is a. $30,266. b. $26,340. c. $21,000. d. $9,948.