"The graph of prices relative to yields is not a straight line, but a curvilinear relationship 1. This can be applied to a single bond, a portfolio of bonds, or any stream of future cash flows 2. The convex price-yield relationship will differ among bonds or other cash flow streams depending on the coupon and maturity 3. The convexity of the price-yield relationship declines slower as the yield increases 4. Modified duration is the percentage change in price for a nominal change in yield. Source: http://in.docsity.com/en-docs/Bond_Price_Volatility_-_Security_Analysis_and_Portfolio_Management_-_Solved_Quiz_"
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