We invite you to participate in our Risk Management Professional Certificate pop quiz. Challenge yourself with the question below!
Q. Which one of the following statements regarding bond duration is correct?
A) The duration of a coupon bond is simply the remaining term to maturity of the bond.
B) The Macaulay duration of a zero coupon bond is simply the term to maturity of the bond.
C) The yield duration of a bond measures the sensitivity of the bond price to changes in yield to maturity on the bond.
D) B and C.
Answer: D.