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Basic Question 1 of 5
Consider the following results for the valuation of a callable bond:
V0 = 100.525.
V+ = 99.968.
V- = 101.235.
dy = 50 basis points.
V0 = 100.525.
V+ = 99.968.
V- = 101.235.
The effective convexity of the bond is:
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.

Tamara Schultz
Learning Outcome Statements
calculate the value of a capped or floored floating-rate bond;
CFA® 2026 Level II Curriculum, Volume 4, Module 28.