bonds 4 - fall in the price of a bond that would occur if...

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Bond yields and prices (convexity) Note that for a given change in the yield of a bond, the priceof the bond will inversely react. In fact, a decrease in a bond’s yield will raise the price of the bond by more than a corresponding
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Unformatted text preview: fall in the price of a bond that would occur if the yield rose. Yield Price Y Y-Y + P-P P +...
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