Question 919 duration, bond convexity
Which of the following statements about bond convexity is NOT correct?
(a) Bond holders like convexity, it’s good for them.
(b) Bond issuers like convexity, it’s good for them.
(c) If yields rise, convex bonds lose less value than non-convex bonds of equal duration.
(d) If yields fall, convex bonds gain more value than non-convex bonds of equal duration.