Multiple Choice
Calculating modified duration involves
A) dividing the value of duration by the change in the market interest rate.
B) dividing the value of duration by 1 plus the interest rate.
C) dividing the value of duration by discounted change in interest rates.
D) multiplying the value of duration by discounted change in interest rates.
Correct Answer:
Verified
Correct Answer:
Verified
Q20: Using a fixed-rate bond to immunize a
Q66: A key assumption of Macaulay duration is
Q79: What conclusions can you draw from the
Q80: Immunization of a portfolio implies that changes
Q81: The larger the size of an FI,the
Q82: The numbers provided are in millions of
Q85: What is the effect of a 100
Q86: The following information is about current
Q88: If all interest rates decline 90
Q89: First Duration Bank has the following assets