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.

---

Definitions:

Ephemeral

Lasting for a very short time; transient.

Real Property

Land and any permanent structures attached to it, such as houses, buildings, and other fixtures, recognized as legal property.

Intellectual Property Rights

Legal rights granted to creators and inventors to protect their creations and inventions from unauthorized use by others.

Personal Property

Items of ownership that are movable and not permanently attached to or part of real estate; includes tangible items like furniture and intangible rights.