Fixed Income Q90

0. An investor wants to see how bond prices move with small changes in yield. The measure he will most likely use is:

  • Option : B
  • Explanation : Modified duration states the change in price of a bond as a result of change in yield for specific basis points/percentage. Macaulay duration states the weighted average time period until each payment due on a bond is expected to be paid off. Accelerated duration is an incorrect term.
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