- 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 number of basis points in the yield-to-maturity change. This is referred to as the ______.
B. bond convexity
C. yield volatility
A. bond duration
B. bond convexity
C. yield volatility
Correct Answer: C
This factor depends on yield volatility, which measures the magnitude of changes in the yields along the yield curve.
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