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Basic Question 18 of 24
One factor that impacts bond price changes is the number of basis points in the yield-to-maturity change. This is referred to as the ______.
B. bond convexity
C. yield volatility
A. bond duration
B. bond convexity
C. yield volatility
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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
explain why effective duration and effective convexity are the most appropriate measures of interest rate risk for bonds with embedded options
calculate the percentage price change of a bond for a specified change in benchmark yield, given the bond's effective duration and convexity
CFA® 2024 Level I Curriculum, Volume 4, Module 13.