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Basic Question 6 of 10
Which duration measure indicates the investment horizon in which coupon reinvestment risk and market risk offset each other?
B. Modified duration
C. Effective duration
A. Macaulay duration
B. Modified duration
C. Effective duration
User Contributed Comments 6
User | Comment |
---|---|
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Vlz2103 | NPV > 0 using abeeman's required rate of return. |
sshetty2 | so agree |

I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.

Andrea Schildbach
Learning Outcome Statements
describe the relationships among a bond's holding period return, its Macaulay duration, and the investment horizon
define, calculate, and interpret Macaulay duration
CFA® 2025 Level I Curriculum, Volume 4, Module 10.