- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 13. Curve-Based and Empirical Fixed-Income Risk Measures
- Subject 1. Curve-Based Interest Rate Risk Measures
CFA Practice Question
Which duration measure(s) can be used to measure an option-free bond?
II. Macaulay duration
III. effective duration
I. modified duration
II. Macaulay duration
III. effective duration
Correct Answer: I, II and III
However, to measure a bond with embedded options only effective duration can be used.
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