Macaulay duration, Macaulay's Duration. Which of the

Macaulay duration

Assignment Help Financial Management

Reference no: EM131870331

1. Macaulay's Duration:

a. is a weighted average of the time until cash flows are received

b. is always greater than maturity

c. is never equal to maturity

d. directly indicates how much the price of a security will change given a change in interest rates

e. estimates when embedded options will be used

2. Which of the following is NOT a way to shorten asset duration?

a. Buy short-term securities and sell long-term securities

b. Make floating-rate loans and sell fixed-rate loans

c. Issuing longer-term CD's

d. All of the above are ways to shorten asset duration

Reference no: EM131870331

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