The "Second-Order" Effect on a Bond's Percentage Price Change Given

question 5

Multiple Choice

The "second-order" effect on a bond's percentage price change given a change in yield-to-maturity can be best described as:

• A) duration.
• B) convexity.
• C) yield volatility.

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Definitions:

Subroutine

A sequence of program instructions that perform a specific task, packaged as a unit. In PLC programming, it can be called multiple times from different parts of the program.

Main Routine

The primary sequence of instructions or program that runs in a PLC or computer to execute various tasks.

Consumed Tag

In industrial automation, a tag or variable from one device that is used or read by another device across a network.

Produced Tag

A label or identifier in a control system that represents data or a status generated by one device and made available to others.