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RBCs Are Better Known as _____ and WBCs Are Better

question 3

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RBCs are better known as _____ and WBCs are better known as _____.


Definitions:

Modified Duration

A measure that estimates how the price of a bond will change in response to a change in interest rates, adjusting for the bond's yield to maturity.

Convexity

The curvature of the price–yield relationship of a bond.

Yield

The annual percentage yield received from an investment, including interest or dividends, relative to the cost of that investment.

Rate Anticipation Swap

A switch made between bonds of different durations in response to forecasts of interest rates.

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