NO.PZ2020033001000059
问题如下:
Which of the following statements is most accurate about callable bonds compared to noncallable bonds?
选项:
A.
They have more price volatility.
B.
They have positive convexity.
C.
Capital gains are capped as yields fall.
D.
At low yields, reinvestment rate risk falls.
解释:
C is correct.
考点:Callable bond
解析:
Callable bonds have the following characteristics:
1) Less price volatility.
2) Negative convexity.
3) Capital gains are capped as yields fall.
4) Reinvestment rate risk increased when yields fall.
如题,同时想知道callable bond的convexity curve是什么样的