When We Improve the Accuracy of the Approximation by Taking

question 19

Multiple Choice

When we improve the accuracy of the approximation by taking account of the curvature of the price-yield curve, the concept is known as:

• A) modified duration.
• B) DGAP.
• C) convexity.
• D) PVBP.

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Definitions:

Codon

Sequence of three nucleotides in mRNA or DNA that codes for a specific amino acid in a protein.

mRNA

Messenger RNA, a form of RNA that carries genetic information from the DNA to the ribosome, where it can be translated into a protein.

Nucleotides

Organic molecules that serve as the building blocks of nucleic acids like DNA and RNA.

Introns

Non-coding sections of an RNA transcript, or the DNA encoding it, that are spliced out before the mRNA molecule is translated into protein.