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    Fixed Income Analysis
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    Exam 5: Understanding Fixed Income Risk and Return
  5. Question
    The "Second-Order" Effect on a Bond's Percentage Price Change Given
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The "Second-Order" Effect on a Bond's Percentage Price Change Given

Question 5

Question 5

Multiple Choice

The "second-order" effect on a bond's percentage price change given a change in yield-to-maturity can be best described as:


A) duration.
B) convexity.
C) yield volatility.

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