Video Production Brief
This lesson is scripted for a rendered Remotion cut. The page below shows the voiceover and animation beats that should drive production.
Lesson Script
0:00-0:15
Hook
Visual
Open on the common miss pattern, then isolate the decision the candidate must make under time pressure.
Voiceover
If forgetting the negative sign in price-yield relationship, this topic starts to feel bigger than it is. We are going to make the decision visible.
0:15-0:40
Visual Model
Visual
A price-yield curve bends away from a straight duration tangent as rate shocks grow.
Voiceover
First, build the picture. The goal is to see the moving parts before trying to memorize the rule.
0:40-1:05
High-Yield Pass
Visual
Highlight the two highest-payoff ideas and remove the details that do not change the answer.
Voiceover
Price and yield move inversely Then Duration estimates first-order sensitivity
1:05-1:30
Trap Lab
Visual
Show two tempting answer paths, cross out the flawed one, and leave the reliable rule path on screen.
Voiceover
The tempting wrong answer usually comes from using duration without recognizing convexity impact. We will name that trap before solving.
1:30-1:55
Repair Drill
Visual
End with one short drill prompt, a pause, and a clean reveal of the answer logic.
Voiceover
Your repair rep after this lesson is simple: estimate price impact from a rate change using duration.
Lesson Objective
Make candidates fluent in rate sensitivity, duration approximation, and convexity correction.
Visual Teaching Plan
A price-yield curve bends away from a straight duration tangent as rate shocks grow.
High-Yield Map
- Price and yield move inversely.
- Duration estimates first-order sensitivity.
- Convexity improves the estimate for larger yield changes.
Common Traps
- Forgetting the negative sign in price-yield relationship.
- Using duration without recognizing convexity impact.
- Confusing modified duration and Macaulay duration.
Repair Drills
- Estimate price impact from a rate change using duration.
- State whether convexity makes the duration-only estimate too high or too low.