- CFA Exams
- CFA Exam: Level I 2021
- Study Session 15. Fixed Income (2)
- Reading 46. Understanding Fixed-Income Risk and Return
- Subject 2. Macaulay, Modified and Effective Durations
CFA Practice Question
The equation [PV-- PV+]/[2xΔCurvePV0] is used to calculate the ______.
B. Modified duration
C. Effective duration
A. Macaulay duration
B. Modified duration
C. Effective duration
Correct Answer: C
Effective duration is a curve duration.
User Contributed Comments 1
| User | Comment |
|---|---|
| janglejuic | also could be PV+ - PV- / 2x curve x pv0 |