CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

Assume a bond has a modified duration of 8.2 and convexity of 42. A 50bps spread widening would result in a ______ price change.
A. 4.15%
B. -4.15%
C. -4.048%
Explanation: The return impact would be -(8.2 x 0.005) + 1/2 x 42 x 0.0052 = -4.048%.

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