Curve-Based and Empirical Fixed-Income Risk Measures
Free CFA Level I lesson in Fixed Income. 11 min read, ~1,706 words.
Learning Outcome Statements (© CFA Institute. Reproduced under EPP listing.):. - explain why effective duration and effective convexity are the most appropriate measures of interest rate risk for bonds with embedded options. - calculate the percentage price change of a bond for a specified change in benchmark yield, given the...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- curve-based and empirical risk measures
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