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    Bank Management Study Set 1
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    Exam 8: Managing Interest Rate Risk: Duration Gap and Economic Value of Equity
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    Which of the Following Allows a Security's Cash Flows to Change
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Which of the Following Allows a Security's Cash Flows to Change

Question 47

Question 47

Multiple Choice

Which of the following allows a security's cash flows to change when interest rates change?


A) Modified duration
B) Macaulay's duration
C) Effective duration
D) Balance sheet duration
E) Income statement duration

Correct Answer:

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