- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 12. Yield-Based Bond Convexity and Portfolio Properties
- Subject 1. Bond Convexity and Convexity Adjustment
CFA Practice Question
Which determinant has a direct relationship with convexity?
B. Maturity
C. Yield
A. Coupon
B. Maturity
C. Yield
Correct Answer: B
The longer the time-to-maturity, the greater the convexity. Dispersion of cash flows also has a direct relationship with convexity.
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