CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

When a bond has "negative convexity," it means that for a large change in interest rates ______

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.