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Explain in detail the difference between Macaulay's duration and modified duration. What is convexity and why is it generally considered a desirable trait? Provide example
- Explain in detail the difference between Macaulay's duration and modified duration.
- What is convexity and why is it generally considered a desirable trait? Provide example with clear explanation
- What are the sources of potential profit and loss for an active bond manager?
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