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For a corporate client's presentation prepared by a fixed-income consultant, which statement would accurately illustrate the application of key rate 01's and forward-bucket 01's in the context of monitoring and hedging interest rate risks?
A
The sum of all key rate 'O1s is equal to the change in price from shifting the yield to maturity by 1 basis point.
B
The key rate shift of the 10-year par rate leads to higher spot rates for all maturities.
C
The sum of all forward bucket '01 shifts is equal to shifting the entire forward curve by 1 basis point.
D
By choosing the key rates for the Us Treasury as 2-, 5-, 10-, and 30-year par yields, a 15-year on-the-run Us Treasury bond has no exposure to the 30-year key rate shift.
