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

question 8

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 is indeterminate.

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Definitions:

Moles

A chemical unit of measure that denotes an amount of substance containing approximately 6.022 x 10^23 particles.

Water

A chemical compound with the formula H2O, consisting of two hydrogen atoms bonded to an oxygen atom, essential for most forms of life.

Moles

A unit of measurement used in chemistry to express amounts of a chemical substance, defined as the amount containing exactly 6.02214076×10²³ particles.

Isopropanol

Also known as isopropyl alcohol, a colorless, flammable chemical compound with a strong odor, used as a solvent and disinfectant.