SOFE AFE Exam - Topic 3 Question 107 Discussion

Actual exam question for SOFE's AFE exam

Question #: 107
Topic #: 3

[All AFE Questions]

Duration is a measure of the first-order interest rate sensitivity of a financial instrument.

ATrue

BFalse

Show Suggested Answer

Suggested Answer: A

by Stevie at Nov 20, 2025, 08:42 AM

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Brittni

3 months ago

I’m leaning towards True too. It’s a fundamental concept.

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Yuki

3 months ago

True makes sense. It’s about price changes with rates.

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Teri

3 months ago

No, I still believe it's True. Duration is key for bonds.

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Willodean

4 months ago

But what if it's B) False? Isn't it more complex?

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Mariann

4 months ago

Agreed! Duration helps assess risk.

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Bette

4 months ago

Yep, duration is super important for managing interest rate risk.

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Pamella

5 months ago

False, I thought it was more complex than that.

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Twanna

5 months ago

Wait, is it really that straightforward?

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Melissa

5 months ago

Totally agree, it's a key concept in bond investing!

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Gearldine

5 months ago

That's true, duration measures interest rate sensitivity.

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Jenise

5 months ago

Haha, this is a no-brainer! Of course, it's true.

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Ira

5 months ago

Yep, duration is the way to go.

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Deonna

6 months ago

I feel like this is a trick question. I recall something about duration being a measure of sensitivity, but I’m not confident.

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Lynelle

6 months ago

I’m a bit confused because I thought duration also considered second-order effects. Is that right?

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Vallie

6 months ago

I remember a practice question where duration was defined as a measure of interest rate risk, so I’m leaning towards True.

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Curtis

6 months ago

I think duration does relate to interest rate sensitivity, but I'm not entirely sure if it's just first-order.

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Janessa

6 months ago

I'm pretty sure this is true, but I'll double-check the details to make sure I'm not missing anything important. Duration is a key fixed-income concept, so I want to get this right.

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Micheline

6 months ago

This seems like a straightforward concept, but I want to make sure I understand it fully before answering. I'll quickly review the definition of duration to be confident in my response.

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Charlene

7 months ago

Okay, I know duration is related to interest rate sensitivity, but I can't quite remember if it's a first-order measure or not. I'll have to review my notes on that.

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