Modified duration is ______ Macaulay duration.
A) equal to
B) greater than
C) less than
D) greater than or equal to

Name: Modified duration is ______ Macaulay duration. A) equal to B) greater than C) less than D) greater than or equal to
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Question

Quizplus · Accepted Answer

Modified duration is less than Macaulay duration because it adjusts the Macaulay duration for the bond's yield to maturity, reflecting the bond's price sensitivity to interest rate changes.

Modified Duration Is ______ Macaulay Duration