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Basic Question 9 of 10

If an investor has a zero duration gap, ______

A. his risk is to lower interest rates.
B. he is hedged against interest rate risk.
C. his risk is to higher interest rates.

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Edward Liu

Edward Liu

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.