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Basic Question 23 of 24
Which type of bonds may have negative convexity?
B. callable bonds
C. putable bonds
A. traditional option free bonds
B. callable bonds
C. putable bonds
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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.