Macaulays duration is less than modified duration except for: a. Zero-coupon bonds. b. Premium bonds. c. Bonds
Question:
Macaulay’s duration is less than modified duration except for:
a. Zero-coupon bonds.
b. Premium bonds.
c. Bonds selling at par value.
d. None of the above.
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The answer is a Zerocoupon bonds Macaulays duration is a measure of the average time it takes a bond...View the full answer
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ISE Essentials Of Investments
ISBN: 9781265450090
12th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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