CFA CFA Level 1 Question of the Week – Effective Duration

Question of the Week – Effective Duration

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    • exam_whiz
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      A 10 Year semi-annual 8% coupon bond is selling at $967. If the yields increase by 50 basis points the price is expected to fall to $924 and if the yields decrease by 50 Basis points the price is expected to rise to $1010. The effective duration is closest to:

      • 4.55
      • 17.79
      • 8.89
    • exam_whiz
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      The correct answer is C. 

      A 10 Year semi-annual 8

    • shannondaily
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      Woo! I got it right. 🙂 

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