- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 11. Yield-Based Bond Duration Measures and Properties
- Subject 1. Modified Duration
CFA Practice Question
The modified duration of a perpetuity is ______.
B. 1/r
C. r / (1+r)
A. (1 + r)/r
B. 1/r
C. r / (1+r)
Correct Answer: B
MacDur = (1 + r)/r, and modified duration = MacDur/(1 + r) = 1/r
User Contributed Comments 1
| User | Comment |
|---|---|
| MrFortei | Good test of concept |