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Basic Question 1 of 15

The key assumption when calculating effective duration and effective convexity is ______

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

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.