The curvature of the price yield curve for a given bond is referred to as the bond's
A) modified duration.
B) immunization.
C) sensitivity.
D) convexity.
E) tangency.

Question

Quizplus · Accepted Answer

Convexity measures the curvature of the price-yield curve of a bond, indicating how the duration of a bond changes as the interest rate changes. It is used to assess the bond's interest rate risk beyond what is captured by duration alone.

The Curvature of the Price Yield Curve for a Given