CFA Practice Question

There are 252 practice questions for this study session.

CFA Practice Question

Consider 2-Year, 3-Year and 5-Year key rate durations for a 5-year option-free bond trading at par. which key rate duration(s) is (are) not zero?
A. 2-, 3- and 5-Year
B. 2- and 5-Year
C. 5-Year only
Explanation: The maturity-matched par rate is the only rate that affects such a bond's value (trading at par).

User Contributed Comments 5

User Comment
janis36 If this bond is coupon paying, is the 2 and 3-year durations equal to zero?
harrybay No
Stoibayev Can someone translate this? I do not understand the question!
mtsimone Vol 5, pp156-157
bruno5104 Go to "Check LOS" and you gonna find a table with 0 key rate duration in non-matched maturity
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