9-50 All fixed-income assets exhibit convexity in their price-yield relationships.

Name: 9-50 All fixed-income assets exhibit convexity in their price-yield relationships.
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Convexity refers to the relationship between the price and yield of a fixed-income asset. As yields change, the price of the asset changes in a curvilinear, or convex, manner. Therefore, all fixed-income assets exhibit convexity in their price-yield relationships.

9-50 All Fixed-Income Assets Exhibit Convexity in Their Price-Yield Relationships