A Bond's Sensitivity Yield Changes Can Be Depicted on the Price-Yield

question 4

Multiple Choice

A bond's sensitivity yield changes can be depicted on the price-yield -to-maturity graph as a _____ curve.

• A) positively-sloped linear
• B) negatively-sloped linear
• C) concave
• D) convex

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Definitions:

Ratio

A relationship in numbers expressing the frequency with which one value encompasses or is encompassed by another.

Lowest Terms

The simplest form of a fraction when both the numerator and denominator cannot be any smaller while still being whole numbers.

Ratio

An arithmetic ratio that illustrates the frequency with which one number incorporates another, depicting how many times one value is contained within another.

Equivalent Ratio

Ratios that express the same relationship between numbers, despite being scaled differently.