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Duration which is divided by interest rate plus one is classified...

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International Finance and Treasury
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Duration which is divided by interest rate plus one is classified as

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Correct Answer: Option C
Duration which is divided by interest rate plus one is classified as modified duration. Modified duration is a formula that expresses the measurable change in the value of a security in response to a change in interest rates. Modified duration follows the concept that interest rates and bond prices move in opposite directions.
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