- 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
Which type of bond has the highest effective duration? Assume other things being equal.
B. callable bond
C. fixed-rate bond
A. zero coupon bond
B. callable bond
C. fixed-rate bond
Correct Answer: A
It is approximately equal to the bond maturity.
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