Learning Module 12 of Fixed Income 11–14% of the exam
Yield-Based Bond Convexity and Portfolio Properties
3 lessons. About 0 minutes in cram mode, 0 minutes in full.
Lessons for this module are being written. The outcomes and lesson plan below are final.
Lessons
- 1 Bond Convexity and Convexity Adjustment
Coming soon
- 2 Bond Risk and Return Using Duration and Convexity
Coming soon
- 3 Portfolio Duration and Convexity
Coming soon
What the exam expects you to do
- Calculate and interpret convexity and describe the convexity adjustment.
- Calculate the percentage price change of a bond for a specified change in yield, given the bond’s duration and convexity.
- Calculate portfolio duration and convexity and explain the limitations of these measures.