CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Positive convexity means that ______
A. bonds prices move inversely with interest rates.
B. the bond price function is curved, opening away from the origin.
C. price changes resulting from equal required yield increases and decreases are of equal magnitude.
Explanation: Positive convexity means that the bond price function is curved, opening away from the origin.

User Contributed Comments 4

User Comment
iceluke is not it A?
Halabjad A is true but doesn't pertain to the ?
natexchang what is the origin?
joelmats the origin is at 0,0
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