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Basic Question 1 of 5
A bond with annual coupon payments has the following characteristics:
Yield to maturity: 10%
Macaulay duration: 9
B. 8.33
C. 9.78
Coupon rate: 8%
Yield to maturity: 10%
Macaulay duration: 9
The bond's modified duration is ______.
A. 8.18
B. 8.33
C. 9.78
User Contributed Comments 7
| User | Comment |
|---|---|
| haarlemmer | annual coupon! |
| tanyak | ANNUAL STUPID COUPON! |
| wink44 | Thought we didn't need to memorize that equation for the test? |
| anneki | We can memorize one more equation. |
| DonAnd | my sentiments exactly wink44 but it is actually an easy formula. |
| rvera | I always think that we should assume a semi-annual coupon...but perhaps that is just me. |
| johntan1979 | Question stated "annual". It's a very easy formula, guys! I'm sure there's some space left in our coconuts after all those CFA curriculum and formulas :) |
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 foreign exchange market, including its functions and participants, distinguish between nominal and real exchange rates, and calculate and interpret the percentage change in a currency relative to another currency
CFA® 2026 Level I Curriculum, Volume 1, Module 7.