Fixed Income - Duration and Convexity Adjustment

CFA Level II Fixed Income
#1

Hi All,

Quick question about L2 Fixed Income. I know we are responsible for calculating the Duration and Convexity of a bond, however, are we responsible for calculating the new price of a bond using the duration and convexity adjustment? (Similar to L1).

From reading the LOS it doesn’t seem like we are required to calculate the new price of bond using the duration and convexity adjustment together, only the calculate the values for both duration and convexity.

Or am I incorrect?

Thanks!

#2

I’ve never seen it at Level II.

1 Like
#3

Thanks S2000magician.

I’ve only just created a profile but have been using AF for both L1 and now L2, your website is great!

1 Like
#4

You’re quite welcome.

And thank you for your kind words.