- CFA Exams
- CFA Level I Exam
- Study Session 15. Fixed Income (2)
- Reading 46. Understanding Fixed-Income Risk and Return
- Subject 5. Money Duration of a Bond and the Price Value of a Basis Point
CFA Practice Question
The PVBP measure is a special case of duration because ______
II. it measures the absolute amount of price change.
III. it measures the dollar amount of price change.
I. it measures the percentage price change.
II. it measures the absolute amount of price change.
III. it measures the dollar amount of price change.
Correct Answer: II and III
User Contributed Comments 2
| User | Comment |
|---|---|
| danlan | Since PVBP measures absolute amount of price change and duration measures relative amount of price change, I do not think it should be considered as a duration. |
| solnce | It is a so-called dollar duration. Still a duration. :) |