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Question
Modified duration:a. estimates when embedded options will be used.
b. directly indicates how much the price of a security will change given a change in interest rates.
c. is always greater than maturity.
d. All of the above
e. a. and b.
Answer
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Related questions
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a. Interest earned on CMOs is exempt from state income taxes.
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c. CMOs exhibit little default risk.
d. All of the above are true.
e. Only a. and c. are true.
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a. Treasury bills
b. commercial paper
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b. A Lubbock County general obligation bond to build a new sewer plant.
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b. currencies in the future at a specified time at an unknown exchange rate.
c. currencies in the future at an unspecified time at an unknown exchange rate.
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d. seed money.
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b. are limited to "negative" provisions.
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b. a loan against the repurchase agreement.
c. a risk-free guarantee.
d. the difference between the market value of the collateral and the amount of the loan.
e. all of the above.