2. A property of an option-free bond is that for a small change in yield, the percentage...

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2. A property of an option-free bond is that for a small change in yield, the percentage price change is roughly the same whether the yield increases or decreases.

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Measuring And Controlling Interest Rate And Credit Risk

ISBN: 9780471268062

2nd Edition

Authors: Frank J. Fabozzi, Steven V. Mann, Moorad Choudhry

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Question Posted: Oct 23, 2024 10:00 AM

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2. A property of an option-free bond is that for a small change in yield, the percentage price change is roughly the same whether the yield increases or decreases.
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1. The price/yield relationship for an option-free bond is convex.
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2. A property of an option-free bond is that for a small change in yield, the percentage...

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Measuring And Controlling Interest Rate And Credit Risk

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