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Basic Question 4 of 17
The convexity adjustment is ______ on a traditional (option-free) fixed-rate bond for either an increase or decrease in the yield.
B. always a negative amount
C. either a positive or a negative amount
A. always a positive amount
B. always a negative amount
C. either a positive or a negative amount
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
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
CFA® 2025 Level I Curriculum, Volume 4, Module 12.