Which of the following is NOT true about duration?
A. It equals the years-to-maturity for a zero coupon bond
B. It equals the weighted average of payment times for a bond, where weights are proportional to the present value of payments
C. Equals the weighted average of individual bond durations for a portfolio, where weights are proportional to the present value of bond prices
D. The prices of two bonds with the same duration change by the same percentage amount when interest rate moves up by 100 basis points
D
D is only approximately true. A, B, and C are exactly true.
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An undisclosed agent breached a contract with a third party. Which of the following is a TRUE statement as to liability for the breach?
A. The agent could be held personally liable. B. The principal could be held liable. C. The agent and the principal would be jointly liable. D. Both a and b are correct.
Managing the firm's short-term financing activities is known as ________
A) capital budgeting B) capital structure C) accounts receivable management D) working capital management