CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

The modified duration of a perpetuity is ______.

A. (1 + r)/r
B. 1/r
C. r / (1+r)
Correct Answer: B

MacDur = (1 + r)/r, and modified duration = MacDur/(1 + r) = 1/r

User Contributed Comments 1

User Comment
MrFortei Good test of concept
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