For an investment, weighted average time to maturity is considered as
A. premium time
B. standard time
C. mean time
D. duration
Answer: Option D
Solution(By Examveda Team)
For an investment, weighted average time to maturity is considered as duration. 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. Essentially, it is the payment-weighted point in time at which an investor can expect to recoup his or her original investment.Join The Discussion
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