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Basic Question 15 of 24

Which duration measure(s) can be used to measure an option-free bond?

I. modified duration
II. Macaulay duration
III. effective duration

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You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

explain why effective duration and effective convexity are the most appropriate measures of interest rate risk for bonds with embedded options

calculate the percentage price change of a bond for a specified change in benchmark yield, given the bond's effective duration and convexity

CFA® 2025 Level I Curriculum, Volume 4, Module 13.