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QUESTION 24 Consider the following statements: I. Macaulay duration indicates the period of time when reinvestment risk and price risk offset each other. II. Modified
QUESTION 24
- Consider the following statements:
I. Macaulay duration indicates the period of time when reinvestment risk and price risk offset each other.
II. Modified Duration = Macaulay Duration (1 + r).
| a. | Both statements are true. |
| b. | One statement is true. |
| c. | None of the statements is true. |
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