ACI Dealing Certificate 3I0-012 Question # 385 Topic 17 Discussion

ACI Dealing Certificate 3I0-012 Question # 385 Topic 17 Discussion

3I0-012 Exam Topic 17 Question 385 Discussion:
Question #: 385
Topic #: 17

Which of the following statements is correct regarding duration?


A.

It is a measure of the average price of a financial instrument.


B.

It doesn’t take into account the timing and market value of cash flows.


C.

It increases if the average coupon increases.


D.

It decreases as maturity decreases


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