问题
单项选择题
An analyst determines that an 8% option-free bond, maturing, in 2015, would experience a 3% change in price if market interest rise by 50 basis points. If market interest rates instead fall by 50 basis points, the bond's price would:（）
A. increase by less than 3%.
B. increase by more than 3%.
C. decrease by less than 3%.
答案
参考答案：B
解析：
The bond is option-free and will therefore exhibit positive convexity. An equal change in rates will produce a greater percentage gain when rates decrease than the percentage loss produced when rates increase.
