If You Plotted A Bond S Price Against Different Possible Interest Rates And The

If you plotted a bond’s price against different possible interest rates and the resulting plot turned out to be a downward sloping straight line (going down from left to right the way a typical demand curve is plotted in economics, not a straight horizontal line), would that bond have non-zero duration? Would it have non-zero convexity? Explain.

  • Attachment 1
  • Attachment 2

Leave a Reply

Your email address will not be published. Required fields are marked *

× How can I help you?