****I thought it was answer B but I got it wrong**** be a generic bond pricing f
ID: 2824429 • Letter: #
Question
****I thought it was answer B but I got it wrong****
be a generic bond pricing function as discussed in the lectures. Dollar duration is:
Question 2 options:
How long it takes on average to get the bond payments back.
A measure interest rate risk as captured by the slope of the yield curve
The slope of the bond pricing function.
The second order derivative of the bond pricing fuction at certain level of the yield y
A.How long it takes on average to get the bond payments back.
B.A measure interest rate risk as captured by the slope of the yield curve
C.The slope of the bond pricing function.
D.The second order derivative of the bond pricing fuction at certain level of the yield y
Explanation / Answer
For generic bond pricing function, Dollar duration is slope of the bond pricing function
Option B
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.