passcfa2016
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- Jun 18, 2026
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2010 AM Q6 Why is the Modified duration formula not into account the yield (1 + yield/k)?
The Modified duration of Bond A from the answer is = 477,139 / 24,556,800 / 0.01 = 1.943. Isn’t this “Duration” and not “Modified duration” as mentioned in solution.
The Modified duration of Bond A from the answer is = 477,139 / 24,556,800 / 0.01 = 1.943. Isn’t this “Duration” and not “Modified duration” as mentioned in solution.