____ is the property of curvature in a graph expressing the percentage change in bond price in response to changes in interest rates.

Question

Quizplus · Accepted Answer

Convexity refers to the degree of curvature in a graph of bond prices in response to changes in interest rates. It expresses the percentage change in bond price in response to changes in interest rates, and helps investors to more accurately estimate the price change of a bond in response to interest rate fluctuations. Breadth refers to the number of stocks or securities in a particular market or sector. Continuity refers to the smoothness and uninterrupted flow of price movement in a market. Duration refers to the sensitivity of bond prices to changes in interest rates, expressed in terms of the time it takes for an investor to recover the bond's price in the form of interest payments. A tick refers to the smallest increment of price movement in a market.

____ Is the Property of Curvature in a Graph Expressing