Convexity Is a Measure of How Much a Bond's Price-Yield

question 48

True/False

Convexity is a measure of how much a bond's price-yield curve deviates from the linear approximation of that curve.

---

Definitions:

Mosquito Control

A management strategy to regulate or eliminate mosquito populations to reduce their damage to human health, economies, and enjoyment.

Marginal Benefit

The additional benefit gained from consuming or producing one extra unit of a good or service.

Optimal Number

The most favorable quantity that achieves the best outcome under specific conditions.

Individual Marginal Benefit

The additional benefit received by an individual from consuming one more unit of a good or service.