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:

Charter of Liberties

A historic document that set out particular civil rights, often seen as a precursor to later bills of rights and constitutional guarantees.

Religious Toleration

The practice of allowing people to observe and practice different religious beliefs without persecution or discrimination, promoting a peaceful and diverse society.

Dutch Influence

The impact and contributions of the Dutch culture, economics, and politics, especially notable in early American history and New York’s development.

King Philip's War

A conflict between American Indian inhabitants of New England and English colonists and their Indian allies from 1675–1678, marking one of the bloodiest wars per capita in U.S. history.