The Modified Duration of the CTD Bond is nowhere to be found in the questions and it just randomly showed up under Solution 2 with no formulas or anything that explains where it came from.
Can someone please help?
I’m not quite sure what sort of help you want.
I can confirm that you’re correct: the duration of the CTD does not appear before they give it to you in the answer.
Thanks for your reply. I was under the impression that everything we need for solutions should’ve been provided in the question.
Your impression is correct: it should have been.
Fortunately, the exam is written by people who don’t make such mistakes.
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