Fixed Income

11. Yield-Based Bond Duration Measures and Properties practice questions

11. Yield-Based Bond Duration Measures and Properties is part of CFA Level I Fixed Income. Fixed Income questions focus on bond cash flows, yield measures, duration, convexity, credit risk, securitization, and curve interpretation. Use this page to review the controlling ideas, then work through 9 questions with answer explanations and common traps.

Review the worked explanations before moving into adaptive practice. The app version can mix this topic with due reviews and weak related concepts.

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What to know

Identify the rule, formula, or decision criterion before reading the answer choices. CFA Level I distractors often use the right vocabulary with the wrong condition.

How to practice

Work each item under time pressure, then compare your reasoning with the step-by-step explanation and key takeaway.

Review signal

Missed questions should become scheduled reviews when the error comes from a concept gap, formula setup, or answer-choice trap.

Moderate

Fixed Income

11. Yield-Based Bond Duration Measures and Properties

An annual-coupon bond has a Macaulay duration of 5.25 years and a yield-to-maturity of 6.0% compounded semiannually. The bond's modified duration is closest to:

Easy

Fixed Income

11. Yield-Based Bond Duration Measures and Properties

Modified duration is best interpreted as a bond's approximate percentage price change for a:

Moderate

Fixed Income

11. Yield-Based Bond Duration Measures and Properties

A bond has a full price of 102.50 per 100 of par and a modified duration of 4.8. For 1,000 par value, the price value of a basis point is closest to:

Very Difficult

Fixed Income

11. Yield-Based Bond Duration Measures and Properties

Compared with a 10-year 6.0% annual coupon bond with the same yield, a 10-year zero-coupon bond most likely has:

Easy

Fixed Income

11. Yield-Based Bond Duration Measures and Properties

Modified duration is best interpreted as the approximate percentage price change for a:

Easy

Fixed Income

11. Yield-Based Bond Duration Measures and Properties

The Macaulay duration of a zero-coupon bond is equal to its:

Moderate

Fixed Income

11. Yield-Based Bond Duration Measures and Properties

A three-year annual-pay 4% coupon bond is priced to yield 5%. Its Macaulay duration is 2.884 years. The modified duration is closest to:

Moderate

Fixed Income

11. Yield-Based Bond Duration Measures and Properties

A bond has a full price of 104.00 per 100 of par and a modified duration of 6.25. The PVBP per 100 of par is closest to:

Moderate

Fixed Income

11. Yield-Based Bond Duration Measures and Properties

A bond has a current full price of 100.75. If yields decrease by 20 bps, its price is 102.45; if yields increase by 20 bps, its price is 99.10. The approximate modified duration is closest to: