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

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