单选题 An analyst determines that an 8% option-free bond, maturing, in 2015, would experience a 3% change in price if market interest rise by 50 basis points. If market interest rates instead fall by 50 basis points, the bond's price would:

A、

A. increase by less than 3%.
B、

B. increase by more than 3%.
C、

C. decrease by less than 3%.

【正确答案】 B

【答案解析】The bond is option-free and will therefore exhibit positive convexity. An equal change in rates will produce a greater percentage gain when rates decrease than the percentage loss produced when rates increase.