- 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
Modified duration is calculated based on measuring the interest rate sensitivity of price with ______.
B. constant expected cash flows discounted at new interest rates or yields
C. price volatility measured by the varying interest rates
D. V- and V+ based on the original yield
A. varying cash flows and constant interest rate shocks
B. constant expected cash flows discounted at new interest rates or yields
C. price volatility measured by the varying interest rates
D. V- and V+ based on the original yield
Correct Answer: B
User Contributed Comments 1
| User | Comment |
|---|---|
| bundy | Assume that a bonds expected cash flows do not change when its yield changes. |