Question 917 Macaulay duration, duration, no explanation
Which of the following statements about Macaulay duration is NOT correct? The Macaulay duration:
(a) Is the weighted average time that an asset’s cash flows are received.
(b) Is measured in units of time, usually years.
(c) Of a zero-coupon bond is equal to the bond’s maturity.
(d) Of a fixed-coupon-paying bond will be more than the bond’s maturity.
(e) Of a portfolio is an arithmetic average of the Macaulay durations of the assets in the portfolio, weighted by their prices.
Copyright © 2014 Keith Woodward