Thank you very much in advance.
CFA Institute is very sloppy on this. They match the modified (or effective) duration of the assets to the Macaulay duration of the liabilities.
Haha I noticed this too. So weird but we can extract the Macaulay from effective I think right?
You can get to Macaulay from modified, but not necessarily from effective.
Oh ya effective is the one for options when we did those fun binomial trees at level II …modified is the easier one with the formula.