- CFA Exams
- CFA Exam: Level I 2021
- Study Session 15. Fixed Income (2)
- Reading 46. Understanding Fixed-Income Risk and Return
- Subject 3. Properties of Bond Duration
CFA Practice Question
When a bond has "negative convexity," it means that for a large change in interest rates ______
B. the amount of price appreciation is greater than the amount of price decline.
C. the amount of price appreciation or decline is unaffected by the rate change.
A. the amount of price appreciation is less than the amount of price decline.
B. the amount of price appreciation is greater than the amount of price decline.
C. the amount of price appreciation or decline is unaffected by the rate change.
Correct Answer: A
User Contributed Comments 0
You need to log in first to add your comment.