CSI IFC Exam - Topic 1 Question 9 Discussion

Actual exam question for CSI's IFC exam

Question #: 9
Topic #: 1

[All IFC Questions]

What may be used to determine which of two bond portfolios is more sensitive to interest rate changes?

ABeta

BSharpe

CVariance

DTime-weighted maturity

Show Suggested Answer

Suggested Answer: D

The sensitivity of a bond or bond portfolio to interest rate changes is measured by duration, also called time-weighted maturity.

Duration represents the approximate % change in bond price for a 1% change in interest rates.

Higher duration = greater sensitivity to interest rate movements.

Therefore, the correct measure is Time-weighted maturity (Duration).

by Glenn at May 04, 2026, 04:56 PM

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Danilo

5 hours ago

Not sure about that, I feel like variance plays a role too.

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Gaynell

5 days ago

I thought it was A) Beta?

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Ernest

11 days ago

Definitely D) Time-weighted maturity!

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Tommy

16 days ago

I’m leaning towards time-weighted maturity since it relates to how long the bonds are held, but I could be mixing it up with another concept we studied.

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Linette

2 months ago

Time-weighted maturity sounds familiar for measuring sensitivity, but I feel like there might be a more direct measure we covered.

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Von

2 months ago

I remember practicing a question about bond portfolios, and I think beta was mentioned in that context. But I’m not confident it applies here.

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Annamae

2 months ago

I think we discussed something about interest rate sensitivity in class, but I'm not entirely sure if it's related to time-weighted maturity or something else.

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