Bond Price Volatility
Bond price volatility refers to how much a bond’s price changes in response to interest rate movements. This video explains the factors that influence volatility and helps you understand which bonds are most sensitive to market shifts.
You’ll learn:
How interest rates affect bond prices (inverse relationship)
Why long-term and low-coupon bonds are more volatile
The role of duration and maturity in price sensitivity
How to compare bond volatility on the exam using key traits
Common exam setups testing volatility, risk, and pricing
📘 Related Exams: SIE, Series 6, Series 7, Series 65, Series 66
🧠 Skill Level: Intermediate
📈 Topics Covered: Bond pricing, interest rate risk, duration, volatility, bond characteristics
Previous
Stock Split Calculations
Next