CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

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.
Correct Answer: B

The key assumption is that all yields-to-maturity rise or fall by the same amount across the curve.

User Contributed Comments 0

You need to log in first to add your comment.