- CFA Exams
- CFA Level I Exam
- Study Session 15. Fixed Income (2)
- Reading 46. Understanding Fixed-Income Risk and Return
- Subject 2. Macaulay, Modified and Effective Durations
CFA Practice Question
Consider a four-year, 5% annual coupon payment bond. Its yield to maturity is 10% and its price is 84.16 per 100 of par value.
What is the Macaulay duration of the bond?
A. 3.4087
B. 3.6950
C. 3.8976
Explanation: Calculate period x weight, then add them up.
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