CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

Modified duration is calculated based on measuring the interest rate sensitivity of price with ______.

A. varying cash flows and constant interest rate shocks
B. constant expected cash flows discounted at new interest rates or yields
C. price volatility measured by the varying interest rates
D. V- and V+ based on the original yield
Correct Answer: B

User Contributed Comments 1

User Comment
bundy Assume that a bonds expected cash flows do not change when its yield changes.
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