单选题
If a bond has a convexity of 120 and a modified duration of 10, what is the convexity adjustment associated with a 25 basis point interest rate decline?
A、
A. -2.875%.
B、
B. -2.125%.
C、
C. +0.075%.
【正确答案】
C
【答案解析】
Con adj =+(120)×(-0.0025)×(-0.0025)=+0.000750 or 0.075%.
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