Examlex

Solved

Because of Convexity of the Price/yield Curve of Fixed-Interest Securities,when

question 87

Multiple Choice

Because of convexity of the price/yield curve of fixed-interest securities,when interest rates _______,duration will _______ the change in price.


Definitions:

Annual Premium

The amount of money that must be paid once a year to maintain an insurance policy or similar financial product.

Endowment Policy

An insurance policy that pays a specified sum to the policyholder upon a certain date, or to the beneficiaries upon the policyholder's death.

Straight-life Policy

A type of life insurance policy that provides coverage for the policyholder's entire lifetime, with fixed premiums and no expiration.

Maximum Loan

The highest amount of money that a lender agrees to lend to a borrower under specific terms.

Related Questions