Durations: Flat price or full price

thisisnick

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Hi guys, I hope my question makes sense. From where do you calculate a bond’s duration, it’s full price or flat price?
 
Full price.
For the exam, they’ll always ask you to calculate duration and convexity on a coupon date, so the distinction won’t matter.
 
Great, thanks!
I sat for last December’s exam and all I can say is that candidates should keep in mind those minute details on their readings. haha
 
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