easy · CFA Level I fixed-income
A bond's price increases more when yields fall by 100 bps than it decreases when yields rise by 100 bps.
This property is known as:
- Negative Convexity
- Positive Convexity
- Modified Duration
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More CFA Level I fixed-income practice
- Its modified duration is closest to:
- In the calculation of Macaulay duration, the weights (w_t) applied to each time period t s
- If all other factors remain constant, which of the following changes will decrease the Mac
- For a Vesper Foods bond with a modified duration of 4.5, a 20 basis point increase in yiel
- Macaulay duration is measured in units of ________, while modified duration is measured in
- Which of the following is synonymous with the 'dirty price' of a Vesper Foods bond?
- If the yield is 0%, what is its modified duration?
- The most likely effect on the computed price is that: