What is negative convexity?
What will be an ideal response?
Negative convexity means that the price appreciation will be less than the price depreciation for a large change in yield of a given number of basis points. For a bond that is option-free and displays positive convexity, the price appreciation will be greater than the price depreciation for a large change in yield. It is important to note that a bond can still trade above its call price even if it is highly likely to be called.
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A) equilateral B) vertical C) multitiered D) communal E) horizontal
A ________ is a contract provision requiring that the employer deduct union dues directly from union employee paychecks. The collected dues are then deposited in the union treasury
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