Option free bond, Callable bond, putable bond bond with low or zero coupon rate-key rate duration with largest impact

CFA Level II
#1

Option free bond, Callable bond, putable bond bond with low or zero coupon rate-key rate duration with largest impact

I simply dont understand the rationale behind this, can some one nice enough to carry me through? Thanks!

#2

I’m not even sure what you’re asking.

Please break it down.

#3

this is about how the maturity date key rate duration is most important one for certain bonds and etc

#4

Straight bond: its maturity.

Callable bond: its maturity when rates are high; the time to its next call date when rates are low

Putable bond: its maturity when rates are low; the time to its next put date when rates are high

#5

can you explain a bit further, for example, I understand duration is the price sensitivity to interest rate, like why for straight bond it is the maturity?

#6

Take a look at the article I wrote on key rate duration: http://financialexamhelp123.com/key-rate-duration/