What does positive convexity on a bond imply? a. The direction of change in yield is directly
Question:
What does positive convexity on a bond imply?
a. The direction of change in yield is directly related to the change in price.
b. Prices increase at a faster rate as yields drop than they decrease as yields rise.
c. Price changes are the same for both increases and decreases in yields.
d. Prices increase and decrease at a faster rate than the change in yield.
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b Prices increase at a faster rate as yields drop than they decrease as yields r...View the full answer
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Related Book For 
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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