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Basic Question 1 of 12

The computed daily standard deviation is 0.5% based on the most recent 26 daily yields on Treasury 30-year zeros. Assuming 250 trading days per year, the annual standard deviation should be ______.

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Edward Liu

Edward Liu

Learning Outcome Statements

explain how a bond's exposure to each of the factors driving the yield curve can be measured and how these exposures can be used to manage yield curve risks;

explain the maturity structure of yield volatilities and their effect on price volatility.

CFA® 2025 Level II Curriculum, Volume 4, Module 26.