curve based duration

Question 1

curve based duartion

Answer 1

yield based assume that CF do not change with the change of yields

they actually do when we have contingency features

Question 2

effective duration (call)

Answer 2

for callable bonds

1.if the rates increase it is very similar to moddur
2.rates drop very less than mod dur because of a call option

Question 3

Effective dur (put)

Answer 3

1. rates increase more convexity than straight bond
2. rates drop as same as straight