The Convexity of a Bond Is Affected as Follows

question 60

Multiple Choice

The convexity of a bond is affected as follows:

• A) Positively with maturity.
• B) Positively with yield.
• C) Inversely with coupon.
• D) Choices a and b
• E) Choices a and c

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Definitions:

Complex Adaptive System

A system that is composed of multiple interconnected elements, which adapt or learn from their interactions with their environment.

Reinforce

To strengthen or support, often with additional material or information.

13th Amendment

An amendment to the United States Constitution, adopted in 1865, that abolished slavery and involuntary servitude, except as punishment for a crime.

18th Amendment

An amendment to the United States Constitution that established the prohibition of alcohol, making the production, transport, and sale of alcohol illegal from 1920 until its repeal in 1933.