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Basic Question 1 of 15

The key assumption when calculating effective duration and effective convexity is ______

A. the yield curve is sloping upwards.
B. there is a parallel yield curve shift.
C. there is a term structure of yield curve.

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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

describe how the term structure of yield volatility affects the interest rate risk of a bond;

describe the relationships among a bond's holding period return, its duration, and the investment horizon;

CFA® 2024 Level I Curriculum, Volume 5, Module 46.