Why do bond portfolio managers use the concept of duration? A) It allows structuring a portfolio to take advantage of changes in credit quality. B) It enables direct comparisons between bond issues with different levels of risk. C) It assesses the time element of bonds in terms of both coupon and term to maturity. D) Duration is the only measure of bond risk.
Let me see if I can fail twice- correct C By the way, sejaldavar where do you get this questions from?
The answer is C - this is from the Schweser Question Bank.
yeh i would say C aswell… just seems like the best answer… with D, i always get suspisicous if they use strong terms, such as “ONLY”