5. The convexity of a bond is _________.

A. the same as horizon analysis B. the rate of change of the slope of the price-yield curve divided by the bond price C. a linear approximation of the curvature of the price-yield curve D. a measure of bond duration

6. Complete the following definitions:

a.) Duration is defined as the point in time when the stream of bond payments is equal to: ________ b.) Duration is also defined as a measure of price _______ (Hint: a word used in economics classes) c.) Convexity measures the degree of ________ of the price-yield function.