ACI
3I0-012 · Question #189
Which of the following statements is correct regarding duration?
The correct answer is D. It decreases as maturity decreases. See the full explanation below for the reasoning.
Question
Which of the following statements is correct regarding duration?
Options
- AIt is a measure of the average price of a financial instrument.
- BIt doesn't take into account the timing and market value of cash flows.
- CIt increases if the average coupon increases.
- DIt decreases as maturity decreases
How the community answered
(46 responses)- A11% (5)
- B2% (1)
- C7% (3)
- D80% (37)
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