Because of Convexity, When Interest Rates Change, the Actual Bond

question 47

Multiple Choice

Because of convexity, when interest rates change, the actual bond price will ________ the bond price predicted by duration.

• A) always be higher than
• B) sometimes be higher than
• C) always be lower than
• D) sometimes be lower than

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Varieties of graphical representations, such as bar charts, pie charts, or line charts, used to visualize data in unique and understandable ways.

Exploded Pie Chart

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