CFA Practice Question

There are 147 practice questions for this study session.

CFA Practice Question

Which factor is most likely the change in the yield curve steepness?
A. Factor 1
B. Factor 2
C. Factor 3
Explanation: For factor 2, a unitary positive standard deviation change appears to raise rates at shorter maturities (e.g., +0.5071% for 0.25-year bonds), but lower rates at longer maturities (e.g., -0.3645% for 20-year bonds). This factor seems to cause changes in the steepness or slope of the yield curve.

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