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Basic Question 2 of 5
The two approaches produce the same portfolio duration when ______
B. the yield curve is flat.
C. the change in the cash flow yield is the same as the change in the yields-to-maturity on the individual bonds.
A. the yield curve has a parallel shift.
B. the yield curve is flat.
C. the change in the cash flow yield is the same as the change in the yields-to-maturity on the individual bonds.
User Contributed Comments 1
| User | Comment |
|---|---|
| zriddle | Most things seem to be equal when the yield curve is flat. |
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
Learning Outcome Statements
calculate portfolio duration and convexity and explain the limitations of these measures
CFA® 2024 Level I Curriculum, Volume 4, Module 12.