问题
单项选择题
Why is convexity a good thing for a bond holder Because when compared to a low convexity bonds a high convexity bond:（）
A. has better price changes regardless of the direction of the yield change.
B. is more sensitive to interest rate changes, increasing the potential payoff.
C. has improved estimation of price changes.
答案
参考答案：A
解析：
Relative to a bonds with low convexity, the price of a bond with high convexity will increase more when rates decline and decrease less when rates rise.