As a Result of Bond Convexity, an Increase in a Bond's

question 56

Multiple Choice

As a result of bond convexity, an increase in a bond's price when yield to maturity falls is ________ the price decrease resulting from an increase in yield of equal magnitude.

• A) greater than
• B) equivalent to
• C) smaller than
• D) The answer cannot be determined from the information given.

---

Definitions:

Social Existence

The way individuals exist or live together in communities or societies, influencing and being influenced by each other.

Nature Of Reality

A philosophical concept that examines the fundamental nature or existence of everything.

Eastern Perspectives

Philosophical, religious, and cultural viewpoints and practices originating from or associated with Eastern societies, such as those in Asia.

Western Perspectives

Viewpoints or ways of thinking that have been shaped by the cultural, historical, and philosophical movements predominant in the Western hemisphere, particularly in Europe and North America.