ACI
3I0-012 · Question #123
The weighted average duration of liabilities can be increased by:
The correct answer is D. exercising an early repayment option on a long-term senior borrowing. See the full explanation below for the reasoning.
Question
The weighted average duration of liabilities can be increased by:
Options
- Abuying additional 30-year German Government bonds
- Bselling futures contracts on 30-year German Government bonds
- Cbuying futures contracts on 10-year German Government bonds
- Dexercising an early repayment option on a long-term senior borrowing
How the community answered
(52 responses)- A6% (3)
- B2% (1)
- C10% (5)
- D83% (43)
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