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3 years ago

Duration is e

Business

2 answers:

Shtirlitz [24]3 years ago

4 0

Answer:

B. the weighted average time to maturity of the bond's cash flows

Explanation:

$(\sum^n_{t=1} \frac{t \times C}{(1+i)^t}+\frac{n \times M}{(1+r)^n} ) /V$

t = time to maturity

r = required return

C = coupon payment

M = maturity

V = market value

Frm the duration formula we can notice there is a weighted average as there is a sum of the coupon payment which is latter divide over the bonds market value

Vadim26 [7]3 years ago

3 0

Answer:

The correct answer is letter "B": the weighted average time to maturity of the bond's cash flows.

Explanation:

Duration measures the exposure of a fixed-income to interest rate changes. Duration is a complex measure but it is standard knowledge supplied with mutual bonds and bond funds. Duration basically shows how long it will take for a fixed-income investment to repay the invested principal before interest payment is generated.

When it comes to bonds, duration would measure the time it takes for a bond to generate income out of the interest rate until the maturity date arrives.

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4 years ago

Larkspur Co. had cost of goods sold of $3,100. If beginning inventory was $3,200 and ending inventory was $1.050. Larkspur's pur

AleksandrR [38]

Answer:

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Explanation:

Giving the following information:

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Answer:

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Explanation:

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