CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

Which of the following most accurately measures interest rate sensitivity for bonds with embedded options?
A. Convexity
B. Effective duration
C. Macaulay duration
Explanation: Effective duration is essential to the measurement of the interest rate risk of a complex bond.

User Contributed Comments 1

User Comment
iceluke page 242 --> effective duration is the appropriate measure for any bond with an embedded option
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