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Basic Question 3 of 17
The "convexity of a bond" measures ______.
B. the small change in price for a small change in yield.
C. the change in price not explained by duration when large interest rate changes occur.
A. the approximate percentage price change for an interest rate or yield change.
B. the small change in price for a small change in yield.
C. the change in price not explained by duration when large interest rate changes occur.
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I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
calculate and interpret convexity and describe the convexity adjustment
calculate the percentage price change of a bond for a specified change in yield, given the bond's duration and convexity
CFA® 2025 Level I Curriculum, Volume 4, Module 12.