Multiple Choice
Which of the following duration analysis is incorrect?
A) Duration can be used to calculate the dollar value impact of an interest rate change on the value of a security.
B) The duration of a portfolio is the weighted duration of each asset or liability in the portfolio.
C) A longer term bond with a higher duration than a short-term bond is faced with higher interest rate risk.
D) Duration analysis assumes that yield curves are normal or upward sloping.
Correct Answer:
Verified
Correct Answer:
Verified
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