Examlex
Sorites 1H
Given the following sorites:
All R are F.
Some K are N.
No R are A.
-For Sorites 1H, the correct answer is:
Convexity
A gauge of how changes in interest rates affect the relationship between the price of bonds and their yields, showing alterations in the bond's duration.
Price-yield Curve
A graphical representation that shows the relationship between the yield of a bond and its price, demonstrating how bond prices move inversely to changes in yield.
Rate of Change
A mathematical measure that calculates the percentage change in the value of a variable over a specific period.
Immunization
A strategy in finance to shield a portfolio from interest rate changes by matching the duration of assets and liabilities.