CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

As times passes during a coupon period, the Macaulay duration ______ and then ______ after the coupon is paid.
A. remains the same; drops sharply
B. declines smoothly; jumps upward
C. rises smoothly; drops sharply
Explanation: During a coupon period, Macaulay duration and modified durations decline smoothly in a "saw-tooth" pattern. They jump up on the coupon payment date.

User Contributed Comments 0

You need to log in first to add your comment.