(Answered) Question convexity draw a picture showing the convex

Finance

Question: (Convexity) Draw a picture showing the convex relationship between price and yield to maturity for a noncallable bond, and then use it to answer the following questions:

a. Why is modified duration a good measure of price sensitivity for noncallable bonds only for small changes in interest rates?

b. For a given bond, how does modified duration vary with the level of interest rates (i.e., bond ytm)?

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