If large yield changes are expected,it is advisable to match convexity as well as duration.

Name: If large yield changes are expected,it is advisable to match convexity as well as duration.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

We know that,as coupon magnitude increases,convexity effects increase,all else held constant.This suggests the accuracy of the duration measure will vary with changes in the characteristics of the bonds as well as the size of the yield change.

If Large Yield Changes Are Expected,it Is Advisable to Match