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    Question

    Which of the following is not true about

    Duration?
    A Duration is dynamic and keeps changing with market yield Correct Answer Incorrect Answer
    B Duration of a coupon paying bond is less than maturity because when some cash-flow is received prior to maturity, the weightage of the terminal cash flow cannot be one. Correct Answer Incorrect Answer
    C Modified duration provides a measure of percentage change in price, for a percentage change in yield Correct Answer Incorrect Answer
    D Duration is the first derivative of the price-yield curve Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    All the above statements are true.

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