问题
单项选择题
If a bond has a convexity of 120 and a modified duration of 10, what is the convexity adjustment associated with a 25 basis point interest rate decline（）
A. -2.875%.
B. -2.125%.
C. +0.075%.
答案
参考答案：C
解析：
Con adj =+(120)×(-0.0025)×(-0.0025)=+0.000750 or 0.075%.