##### Q-21. The 10 basis point shock to the 10-year spot rate is supposed to decline linearly to zero for the 20-year spot rate. Thus, the stock decrease by 1 basis point per year and will result in an increase of 6 basis points for the 14-year spot rate. | Financial Risk Manager Part 1 Quiz - LeetQuiz
Financial Risk Manager Part 1
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Q-21. The 10 basis point shock to the 10-year spot rate is supposed to decline linearly to zero for the 20-year spot rate. Thus, the stock decrease by 1 basis point per year and will result in an increase of 6 basis points for the 14-year spot rate.