Yield-Based Bond Convexity and Portfolio Properties (2025 CFA® L l Exam – Fixed Income – LM 12)

Master Yield-Based Bond Convexity and Portfolio Properties for the 2025 CFA® Level I Exam (Fixed Income – LM 12). In this lesson, Jim explains how duration and convexity work together to measure interest rate risk more accurately. You’ll learn to calculate price changes, interpret convexity adjustments, and apply these concepts to both individual bonds and portfolios.

📌 What you’ll learn in this video:

Duration vs Convexity: Why both are needed to measure bond price sensitivity

Convexity adjustments for more precise bond valuation

Examples with modified duration and convexity calculations

Portfolio duration and convexity with weighted averages

Limitations when yield curve shifts are non-parallel

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Topic 7 – Fixed Income
Learning Module 12 – Yield-Based Bond Convexity and Portfolio Properties
- LOS : Calculate and interpret convexity and describe the convexity adjustment.
- LOS : Calculate the percentage price change of a bond for a specified change in yield, given the bond’s duration and convexity.
- LOS : Calculate portfolio duration and convexity and explain the limitations of these measures.
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Видео Yield-Based Bond Convexity and Portfolio Properties (2025 CFA® L l Exam – Fixed Income – LM 12) канала AnalystPrep