Convexity is a desirable feature of bonds because
a. As interest rates decline, the price of a low convexity bond decreases at a decreasing rate.
b. As interest rates decline, the price of a high convexity bond decreases at an increasing rate.
c. As interest rates decline, the price of a low convexity bond increases at a decreasing rate.
d. As interest rates decline, the price of a high convexity bond increases at an increasing rate.
e. As interest rates decline, the price of a high convexity bond decreases at a decreasing rate.
D
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