Why is Macaulay duration an inadequate measure of interest rate risk for an MBS?

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Fundamentals Of Investments

ISBN: 9780072829198

3rd Edition

Authors: Charles J. Corrado

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Question Posted: May 30, 2024 10:05 AM

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Why is Macaulay duration an inadequate measure of interest rate risk for an MBS? Why is effective duration a better measure of interest rate risk for an MBS?
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Why is Macaulay duration an inadequate measure of interest rate risk for an MBS?

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Fundamentals Of Investments

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