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Which of the following statements is correct for a plain vanilla bond? Select one: a. When the required yield decreases, the convexity of the bond
Which of the following statements is correct for a plain vanilla bond? Select one: a. When the required yield decreases, the convexity of the bond decreases. b. For a given yleld and maturity, higher coupon rate bonds have a greater convexity. c. For a given yield and modified duration, lower coupon rate bonds have a greater convexity. d. None of the other statements are correct. e. When the required yleld increases, the convexity of the bond decreases
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