The Modified Duration

question 74

Multiple Choice

The modified duration:

• A)is equal to the Macaulay duration divided by (1 + yield to maturity).
• B)multiplied by (−1 × change in the yield to maturity)equals the approximate percentage change in a bond's price.
• C)will be the same for any bonds that have equal times to maturity.
• D)only applies to pure discount securities.
• E)must be converted to a Macaulay duration before computing the percentage change in a bond's price.

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