- 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
Duration measures the ______ of a bond's value to changes in ______.
B. sensitivity; option-free value
C. sensitivity; yield
A. multiple; maturity
B. sensitivity; option-free value
C. sensitivity; yield
Correct Answer: C
The yield can be its own yield or benchmark yield.
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