How Does Effective Duration Differ from Modified Duration

question 43

Short Answer

How does effective duration differ from modified duration?

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Definitions:

Right Margin

The right boundary of a text block in a document, where the line of text ends on the right side.

Limbs

Refers to the arms and legs.

Simultaneous

Occurring at the same time.

Anterior Axillary Line

An imaginary line drawn along the body from the armpit (anterior axilla) down through the point at which the arm joins the body.