contestada

As applied to bonds, duration refers to
a. the average price and annual reinvestment rate of return for a bond.
b. the point in the life of a bond when its yield-to-maturity equals its expected yield.
c. the average maturity of a diversified portfolio of corporate bonds.
d. the point in the life of a bond when its price risk exactly offsets its reinvestment risk.

Respuesta :

As applied to bonds, duration refers to the point in the life of a bond when its price risk exactly offsets its reinvestment risk.

A bond refers to a fixed income investment where an investor will loan funds to a business or government. Bonds are borrowed money over a set period of time with a set, fixed, interest rate.  

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