CFA Practice Question

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CFA Practice Question

The equation [PV-- PV+]/[2xΔYieldPV0] is used to calculate ______.
A. Macaulay duration
B. Modified duration
C. Effective duration
Explanation: This approach is used to approximate modified duration.

User Contributed Comments 4

User Comment
alles first: the explanation seems to indicate that the right answer is B modified duration. second: if it was the formula for effective duration, shouldn't it use the variation in the curve instead of just the variation in yield? I think this is the formula for modified duration.
puma @alles: it says to "approximate", not to calculate.
thanhb91 Isn't this one is also an approximate for the effective duration?
dbalakos In the book the difference is explicitly ΔYield for AppModDur VS ΔCurve for EffDur.
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