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Basic Question 2 of 10

Duration measures the ______ of a bond's value to changes in ______.

A. multiple; maturity
B. sensitivity; option-free value
C. sensitivity; yield

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Craig Baugh

Craig Baugh

Learning Outcome Statements

describe the relationships among a bond's holding period return, its Macaulay duration, and the investment horizon

define, calculate, and interpret Macaulay duration

CFA® 2024 Level I Curriculum, Volume 4, Module 10.