Question: Choose correct statement from the statements below about bonds: The relationship between bond yields and bond prices is linear Convexity is a positive feature for
Choose correct statement from the statements below about bonds: The relationship between bond yields and bond prices is linear Convexity is a positive feature for investors, as yields decline, prices increase further due to convexity, and as yields increase, prices decline not as much as linear relationship between price and yield would suggest. The graph of the price function of change in bond price, due to change in yields is sometimes liner and sometimes not Convexity is always a negative feature for investors, it turns positive for callable bonds
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