years b. What is a better measure when calculating the bond's sensitivity to changes in...
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years b. What is a better measure when calculating the bond's sensitivity to changes in interest rates? is a better measure of the bond's sensitivity to changes in interestrates as;-select-1+ithin considers only the final cash flow, while includes other factors. c. Identify the direction of change in modified duration if: 1. the coupon of the bond were 12%, not 8%. Modified duration as the coupon increases. 2. the maturity of the bond were 5 years, not 12 years. Modified duration as maturity decreases
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