SOFE
AFE · Question #52
What is the second-order measure of the interest rate sensitivity of an instrument and the sensitivity of duration to changes in interest rates?
The correct answer is B. Convexity. See the full explanation below for the reasoning.
Question
What is the second-order measure of the interest rate sensitivity of an instrument and the sensitivity of duration to changes in interest rates?
Options
- AComplexity
- BConvexity
- CTime compliance
- DPerformance measure
How the community answered
(32 responses)- A16% (5)
- B72% (23)
- C9% (3)
- D3% (1)
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