Sir in the candidate resource it's given that the statement is wrong because when yield rises the value of the putable bond is equal to the floor value and the effective convexity is close to zero. But in option free bond ec is higher because its value continues to decrease at an ever decreasing ratRead more
Sir in the candidate resource it’s given that the statement is wrong because when yield rises the value of the putable bond is equal to the floor value and the effective convexity is close to zero. But in option free bond ec is higher because its value continues to decrease at an ever decreasing rate.
Effective convexity
Sir in the candidate resource it's given that the statement is wrong because when yield rises the value of the putable bond is equal to the floor value and the effective convexity is close to zero. But in option free bond ec is higher because its value continues to decrease at an ever decreasing ratRead more
Sir in the candidate resource it’s given that the statement is wrong because when yield rises the value of the putable bond is equal to the floor value and the effective convexity is close to zero. But in option free bond ec is higher because its value continues to decrease at an ever decreasing rate.
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