Test your knowledge 29

A Bond X is being hedged with a CTD bond. CTD bond has 30% more volatility than bond X. What is yield beta of Bond X with respect to the CTD bond? A. 1.3 B. 0.7 C. .769 Cheers :slight_smile:

C, since we are looking for the yield beta on bond x. 1/1.3 = .769

c for sure