Bond Convexity Refers the Property of Bonds That Causes Prices

question 70

Multiple Choice

Bond convexity refers the property of bonds that causes prices

• A) to rise and fall in a way that exactly offsets changes in yield to maturity.
• B) rise and fall in a linear manner as yields change.
• C) rise at a decreasing rate when yields fall.
• D) rise at an increasing rate when yields fall.

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