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Basic Question 19 of 19

For a non-callable bond, the price change resulting from a 200 bp increase in required yield ______.

A. will be greater in magnitude than the price increase resulting from a 200 bp decrease in required yield
B. will be of the same magnitude as the price increase resulting from a 200 bp decrease in required yield
C. will be smaller in magnitude than the price increase resulting from a 200 bp decrease in required yield

User Contributed Comments 2

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johntan1979 Positive convexity
ibrahim18 Na wa o
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

identify the relationships among a bond's price, coupon rate, maturity, and yield-to-maturity

CFA® 2024 Level I Curriculum, Volume 4, Module 6.