Q52. An analyst determines that an 8% option-free bond, maturing, in 2015, would experience a 3% change in price if market interest rise by 50 basis points. If market interest rate instead fall by 50 basis points, the bond's price would:

A. increase by exactly 3%.

B. increase by less than 3%.

C. Decrease by less than 3%.

D. Increase by more than 3%.

答案和详解如下：

Q52.  D          Study Session 16-72.b

The bond is option-free and will therefore exhibit positive convexity. Are equal change is rates will produce a greater percentage gain when rates decrease than the percentage loss produced when rates increase.

顶

thx.