- 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
One factor that impacts bond price changes is the number of basis points in the yield-to-maturity change. This is referred to as the ______.
B. bond convexity
C. yield volatility
A. bond duration
B. bond convexity
C. yield volatility
Correct Answer: C
This factor depends on yield volatility, which measures the magnitude of changes in the yields along the yield curve.
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