Seeing is believing!

Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.

Basic Question 8 of 14

Consider a 10-year, 2% annual coupon, option-free bond. Assume a 4% flat yield curve. One key-rate duration calculated by an analyst is -0.13. This is MOST LIKELY to be the key rate duration of:

A. 3-Year
B. 10-Year
C. Duration cannot be a negative number.

User Contributed Comments 0

You need to log in first to add your comment.
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu

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.