Duration is a weighted-average payment time for a bond


Which of the following statements concerning duration are correct?

I. Duration is a weighted-average payment time for a bond.

II. The Macaulay duration considers the timing of a bond's cash flows.

III. The Macaulay duration uses the YTM of a bond to discount the cash flows.

IV. For coupon bonds, duration will be less than the actual time to maturity.

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Financial Management: Duration is a weighted-average payment time for a bond
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