- CFA Exams
- CFA Level I Exam
- Study Session 15. Fixed Income (2)
- Reading 46. Understanding Fixed-Income Risk and Return
- Subject 7. Interest Rate Risk and the Investment Horizon
CFA Practice Question
One factor that impacts bond price changes is the impact per basis point change in the yield-to-maturity. This is referred to as the ______.
II. bond convexity
III. yield volatility
I. bond duration
II. bond convexity
III. yield volatility
Correct Answer: I and II
This factor is estimated by duration and convexity.
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