Question: The modified duration: Multiple Choice is equal to the Macaulay duration divided by ( 1 + yield to maturity ) . multiplied by ( -

The modified duration:
Multiple Choice
is equal to the Macaulay duration divided by (1+ yield to maturity ).
multiplied by (-1 change in the yield to maturity) equals the approximate percentage change in a bond's price.
will be the same for any bonds that have equal times to maturity.
only applies to pure discount securities.
must be converted to a Macaulay duration before computing the percentage change in a bond's price.
The modified duration: Multiple Choice is equal to the Macaulay duration

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