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Basic Question 1 of 15
The key assumption when calculating effective duration and effective convexity is ______
B. there is a parallel yield curve shift.
C. there is a term structure of yield curve.
A. the yield curve is sloping upwards.
B. there is a parallel yield curve shift.
C. there is a term structure of yield curve.
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I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
describe how the term structure of yield volatility affects the interest rate risk of a bond;
describe the relationships among a bond's holding period return, its duration, and the investment horizon;
CFA® 2024 Level I Curriculum, Volume 5, Module 46.