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Basic Question 5 of 5
The duration of a fixed-income portfolio is best interpreted as the ______.
B. percentage change in the portfolio's value if interest rates change by 100 basis points
C. weighted average number of years to receive the present value of the portfolio's cash flows
A. first derivative of the price function for the bonds in the portfolio
B. percentage change in the portfolio's value if interest rates change by 100 basis points
C. weighted average number of years to receive the present value of the portfolio's cash flows
User Contributed Comments 3
| User | Comment |
|---|---|
| shamflora1 | why not C? |
| khalifa92 | i guess because it didnt mention macaulay |
| khalifa92 | plus it says present value |
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Learning Outcome Statements
calculate portfolio duration and convexity and explain the limitations of these measures
CFA® 2024 Level I Curriculum, Volume 4, Module 12.