CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

The modified duration of a zero coupon bond is affected by its ______.

I. yield-to-maturity
II. coupon rate
III. time-to-maturity
A. III only
B. I and III
C. I, II and III
Explanation: The Macaulay duration is its time-to-maturity. The modified duration = Macaulay duration / (1 + YTM).

User Contributed Comments 1

User Comment
dbalakos But isnt the MacDur affected by coupon rates so that ModDur is implicitly affecetd by them as well?
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