Question: Option-adjusted duration and effective duration are alternative measures used by analysts to evaluate fixed-income securities with embedded options. Briefly describe each measure, and how to

Option-adjusted duration and effective duration are alternative measures used by analysts to evaluate fixed-income securities with embedded options. Briefly describe each measure, and how to apply each to the evaluation of fixed-income securities with embedded options.

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Optionadjusted duration Duration of the noncallable bond duration of the call option More precisely optionadjusted duration OAD is the duration of a c... View full answer

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