A. premium time
B. standard time
C. mean time
D. duration
✅ The correct answer is option D.
For an investment, weighted average time to maturity is considered as duration. Duration is defined as the average time it takes to receive all the cash flows of a bond, weighted by the present value of each of the cash flows. Essentially, it is the payment-weighted point in time at which an investor can expect to recoup his or her original investment.
For an investment, weighted average time to maturity is considered as duration. Duration is defined as the average time it takes to receive all the cash flows of a bond, weighted by the present value of each of the cash flows. Essentially, it is the payment-weighted point in time at which an investor can expect to recoup his or her original investment.