- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 13. Curve-Based and Empirical Fixed-Income Risk Measures
- Subject 1. Curve-Based Interest Rate Risk Measures
CFA Practice Question
When a bond has "negative convexity," it means that for a large change in interest rates ______
B. the amount of price appreciation is greater than the amount of price decline.
C. the amount of price appreciation or decline is unaffected by the rate change.
A. the amount of price appreciation is less than the amount of price decline.
B. the amount of price appreciation is greater than the amount of price decline.
C. the amount of price appreciation or decline is unaffected by the rate change.
Correct Answer: A
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