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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

  1. 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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