问题
单项选择题
A bond has a modified duration of 6 and a convexity of 62.5. What happens to the bond's price if interest rates rise 25 basis points It goes:（）
A. down 1.46%.
B. up 4.00%.
C. up 1.46%.
答案
参考答案：A
解析：
AP/P=(-)(MD)(△i+(C)(△i)2=-6×0.0025+62.5×0.00252=-0.015+0.00039=-0.01461.