Why should I choose AnalystNotes?
AnalystNotes specializes in helping candidates pass. Period.
Basic Question 6 of 24
The equation [PV-- PV+]/[2xΔCurvePV0] is used to calculate the ______.
B. Modified duration
C. Effective duration
A. Macaulay duration
B. Modified duration
C. Effective duration
User Contributed Comments 1
| User | Comment |
|---|---|
| janglejuic | also could be PV+ - PV- / 2x curve x pv0 |
Your review questions and global ranking system were so helpful.
Lina
Learning Outcome Statements
explain why effective duration and effective convexity are the most appropriate measures of interest rate risk for bonds with embedded options
calculate the percentage price change of a bond for a specified change in benchmark yield, given the bond's effective duration and convexity
CFA® 2025 Level I Curriculum, Volume 4, Module 13.