This ______ pattern of bond price changes relative to interest rate changes is also called bond convexity.
A)asymmetric
B)symmetric
C)normal
D)uniform

Question

Quizplus · Accepted Answer

The correct term is "asymmetric" because bond convexity refers to the way bond prices increase more when interest rates fall than they decrease when interest rates rise, which is not a symmetrical relationship.

This ______ Pattern of Bond Price Changes Relative to Interest