- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 26. The Term Structure and Interest Rate Dynamics
- Subject 5. Yield Curve Factor Models
CFA Practice Question
Shaping risk is defined as the sensitivity of a bond's price to:
B. the changing shape of the yield curve.
C. the changing yield volatility.
A. the changing yield to maturity.
B. the changing shape of the yield curve.
C. the changing yield volatility.
Correct Answer: B
The shape of the yield curve changes continuously.
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