12. Yield-Based Bond Convexity and Portfolio Properties sample question
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Fixed Income / 12. Yield-Based Bond Convexity and Portfolio Properties
Choose an answer before revealing the explanation, key takeaway, and answer-choice review.
12. Yield-Based Bond Convexity and Portfolio Properties
A bond has modified duration of 7.2 and convexity of 82. For a 40 bp increase in yield, the estimated percentage price change using duration and convexity is closest to:
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