The Modified Duration

The modified duration:

A) is equal to the Macaulay duration divided by (1 + yield to maturity) .
B) multiplied by (−1 × change in the yield to maturity) equals the approximate percentage change in a bond's price.
C) will be the same for any bonds that have equal times to maturity.
D) only applies to pure discount securities.
E) must be converted to a Macaulay duration before computing the percentage change in a bond's price.

Correct Answer:

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