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Basic Question 9 of 10
If an investor has a zero duration gap, ______
B. he is hedged against interest rate risk.
C. his risk is to higher interest rates.
A. his risk is to lower interest rates.
B. he is hedged against interest rate risk.
C. his risk is to higher interest rates.
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
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.