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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 ______.

A. bond duration
B. bond convexity
C. yield volatility

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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

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® 2025 Level I Curriculum, Volume 4, Module 13.