Duration which is divided by interest rate plus one is classified as

A decreased duration
B increase duration
C modified duration
D at par duration

Correct Answer: modified duration

Duration which is divided by interest rate plus one is classified as modified duration. Modified duration is a formula that expresses the measurable change in the value of a security in response to a change in interest rates. Modified duration follows the concept that interest rates and bond prices move in opposite directions.
Bissoy MCQ
#Management #International Finance And Treasury

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