CFAI RESPONSE: Yield Beta Question

CFA Level III
#41

Thanks so much for clearing up this for us. This thing has been in the back of my mind for a quite long time. Now I can let it go.

#42

so is it confirmed that we do use the yield beta in this question?

#43

dipper Wrote: ------------------------------------------------------- > so is it confirmed that we do use the yield beta > in this question? I think the consensus what there was a typo in the question where the yield beta should have been 1. But on the exam, if you are given a yield beta different from 1, use that.

#44

Hmm… The vignette gives you the FUTURES contract’s duration, then why do you need to multiply by the conversion factor at all… you already have the duration you are interested in?

#45

bottom line - if given a yield beta, i’m using it. if given a conversion factor, i’m using it. if that costs me 6 points, so be it - gotta keep moving.

#46

bump. CFAI’s typo…