What does it mean when a bond exhibits negative convexity?
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What does it mean when a bond exhibits negative convexity?
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A bond exhibits negative convexity when its price changes in a way thats less favorable than a perfectly straight line relationship with interest rates Heres a breakdown Convexity in a Nutshell Imagine the relationship between a bonds price and its yield interest rate ...View the full answer
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Related Book For
Introduction To Fixed Income Analytics
ISBN: 9780470572139
2nd Edition
Authors: Steven V. Mann, Frank J. Fabozzi
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