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Basic Question 4 of 14
If a call option is in the money, the one-sided up duration (if interest rate rises) is MOST LIKELY ______ the one-sided down duration.
B. lower than
C. equal to
A. higher than
B. lower than
C. equal to
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Learning Outcome Statements
calculate and interpret effective duration of a callable or putable bond;
compare effective durations of callable, putable, and straight bonds;
describe the use of one-sided durations and key rate durations to evaluate the interest rate sensitivity of bonds with embedded options;
CFA® 2025 Level II Curriculum, Volume 4, Module 28.