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    Question

    The average time until the cash flows on the bond is

    received:
    A Convexity Correct Answer Incorrect Answer
    B Duration Correct Answer Incorrect Answer
    C Option Correct Answer Incorrect Answer
    D Yield to maturity Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Duration is defined as the average time it takes to receive all the cash flows of a bond, weighted by the present value of each of the cash flows.

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