Duration measures

A) weighted-average time until a bond's half-life.
B) weighted-average time until cash flow payment.
C) the time required to make excessive profit from the investment.
D) weighted-average time until a bond's half-life and the time required to make excessive profit from the investment.
E) weighted-average time until cash flow payment and the time required to make excessive profit from the investment.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, frequently used to assess interest rate risk.

Weighted-Average Time

A calculation that determines the mean time until cash flows are received, adjusted for the relative size of each cash flow, often used in bonds.

Cash Flow Payment

Payments of money, particularly from a company or government to an individual, which can arise from operations, financing, or investments.