Fixed income: term structure: r55 P265, q21: when daily yield vol is 7%, why multiple it by annual yield could get annual vol? I am not sure if I get the point. thanks.

good question i dont get this at all

The annualized yield based on daily yields is 7%. That’s not the daily yield volatility, it just uses daily yield volatility as an input. Using a 250 day year, the daily yield volatility would be 0.028% (7/250). I JUST finished this chapter, so the timing was right!

still don’t annual yield * daily yield vol, what the meaning it is? Thanks. grumble Wrote: ------------------------------------------------------- > The annualized yield based on daily yields is 7%. > That’s not the daily yield volatility, it just > uses daily yield volatility as an input. Using a > 250 day year, the daily yield volatility would be > 0.028% (7/250). > > I JUST finished this chapter, so the timing was > right!