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Basic Question 0 of 11
Modified duration is calculated based on measuring the interest rate sensitivity of price with ______.
B. constant expected cash flows discounted at new interest rates or yields
C. price volatility measured by the varying interest rates
D. V- and V+ based on the original yield
A. varying cash flows and constant interest rate shocks
B. constant expected cash flows discounted at new interest rates or yields
C. price volatility measured by the varying interest rates
D. V- and V+ based on the original yield
User Contributed Comments 1
| User | Comment |
|---|---|
| bundy | Assume that a bonds expected cash flows do not change when its yield changes. |
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Learning Outcome Statements
define, calculate, and interpret modified duration, money duration, and the price value of a basis point (PVBP)
CFA® 2026 Level I Curriculum, Volume 4, Module 11.