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Basic Question 4 of 17
The convexity adjustment is ______ on a traditional (option-free) fixed-rate bond for either an increase or decrease in the yield.
B. always a negative amount
C. either a positive or a negative amount
A. always a positive amount
B. always a negative amount
C. either a positive or a negative amount
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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
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.