单选题 How does the convexity of a bond influence the yield on the bond? All else the same, for a bond with high convexity investors will require: A. a higher yield. B. a lower yield. C. the same yield as for a low convexity bond.

【正确答案】 B

【答案解析】Convexity is to the advantage of the bond holder because a high-convexity bond's price will decrease less when rates increase and will increase more when rates decrease than a low-convexity bond's price.