The holding period for a bond at which the coupon reinvestment risk offsets the market price risk

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The holding period for a bond at which the coupon reinvestment risk offsets the market price risk is best approximated by:

A. Duration gap.

B. Modified duration.

C. Macaulay duration.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 08, 2023 03:41 AM

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The holding period for a bond at which the coupon reinvestment risk offsets the market price risk

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The correct answer is C Macaulay duration Macaulay duration is a measure of a bonds price sensitivit...View the full answer

Fixed Income Analysis

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