Money Duration- Effective or Modified?

CFA Level III Fixed Income
#1

If an exhibit or problem requires calculating Money Duration, and both modified duration and effective duration are given, which should be used?

Also, should money duration be calculated per 100 of par value or in terms of the bond’s actual position size?

#2

Use effective duration.

#3

Any ideas on if money duration should be calculated per 100 of par value or in terms of the bond’s actual position size?

#4

Actual size.

That’s the point.

#5

Any explanation / evidence for this? The CFA source material clearly states that, “The money duration of a bond is a measure of the price change in units of the currency in which the bond is denominated. Money duration can be stated per 100 of par value or in terms of the bond’s actual position size in the portfolio.” In another area in a footnote, the Money duration is referenced as "money duration of the portfolio = (Effective duration × Portfolio value per $1 of par) divided by 100

This is why I was asking. It would be helpful to understand if A. One approach is preferred, B. The desired approach will be communicated to us on the exam, or C. One approach is used for one situation and the second approach is used for another.