SIE practice questioneasyDuration
What does duration measure with respect to a bond?
- AThe bond's coupon rate
- BThe time until maturity
- CA bond's price sensitivity to interest rate changes✓ Correct answer
- DThe total return on investment
Explanation
Why C — A bond's price sensitivity to interest rate changes
Duration measures the sensitivity of a bond's price to changes in interest rates, not maturity, coupon rate, or total return.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Debt Securities questions