The barbell

Why compare a barbell with a bullet of the same average maturity?

• Because both then earn the same yield
• Because it matches their first-order rate sensitivity, so any difference comes from shape
• Because the rule of thumb only works for 5-year bonds

In Lesson 7's parallel moves, the barbell lost a little less and gained a little more than the bullet. What is that property called?

• Duration
• Reinvestment risk
• Convexity