Which of the following is the correct algebraic expression of modified duration? (PV01 is based on interest rate(r) that are compounded m times a year instead of continuously)
A) Modified duration=[DUR/(1+ r/m) ] 0.0001 P
B) Modified duration=[DUR/(1- r/m) ] 0.0001 P
C) Modified duration= DUR/(1+ r/m)
D) Modified duration= DUR/(1- r/m)
Correct Answer:
Verified
Q2: The current yield to maturity is 7%
Q3: PV01 is a measure:
A)of how much a
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Q10: Which of the following is true of
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