Which is the more precise measurement of bond price sensitivity?
A) Convexity
B) Duration
C) Maturity
D) Yield

Name: Which is the more precise measurement of bond price sensitivity? A) Convexity B) Duration C) Maturity D) Yield
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Question

Quizplus · Accepted Answer

Convexity is a measure of the curvature in the relationship between bond prices and interest rates, providing a more precise measure of bond price sensitivity compared to duration, which only measures the linear relationship.

Which Is the More Precise Measurement of Bond Price Sensitivity