which bond in Exhibit 1 most likely has the lowest effective convexity?
A) Ai bond
B) Bi bond
C) CE bond

Name: which bond in Exhibit 1 most likely has the lowest effective convexity? A) Ai bond B) Bi bond C) CE bond
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Question

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The lower the term to maturity, the lower the convexity. The Ai bond has the shortest term to maturity (1 year) in Exhibit 1, so it is likely to have the lowest effective convexity.

Which Bond in Exhibit 1 Most Likely Has the Lowest