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Which one of the following statements is CORRECT? A. DV01 measures the curvature of a bond's price yield curve at a particular point. B. DV01

Which one of the following statements is CORRECT?

A.
DV01 measures the curvature of a bond's price yield curve at a particular point.

B.
DV01 has no relationship to the interest rate sensitivity of a bond.

C.
Bond (X) has a DV01 of $50 and bond (Y) has a DV01 of $75. But, it is not possible without additional information to determine which bond is the most sensitive to changes in the relevant interest rate.

D.
Bond (X) has a DV01 of $50 and bond (Y) has a DV01 of $75. Therefore, bond X must be more sensitive to changes in the relevant interest rate than bond Y.

E.
Bond (X) has a DV01 of $50 and bond (Y) has a DV01 of $75. Therefore, bond Y must be more sensitive to changes in the relevant interest rate than bond X.

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Previous Question Next Question

	A.	DV01 measures the curvature of a bond's price yield curve at a particular point.
	B.	DV01 has no relationship to the interest rate sensitivity of a bond.
	C.	Bond (X) has a DV01 of $50 and bond (Y) has a DV01 of $75. But, it is not possible without additional information to determine which bond is the most sensitive to changes in the relevant interest rate.
	D.	Bond (X) has a DV01 of $50 and bond (Y) has a DV01 of $75. Therefore, bond X must be more sensitive to changes in the relevant interest rate than bond Y.
	E.	Bond (X) has a DV01 of $50 and bond (Y) has a DV01 of $75. Therefore, bond Y must be more sensitive to changes in the relevant interest rate than bond X.