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Bond Convexity Due to Coupon Rate
Given the same maturity and quality, the price of a bond that carries a higher coupon rate will be less sensitive to changes in market interest rates than the price of a bond that carries a lower coupon rate. This chart assumes a 30-year bond and a current market rate of 6%.
Source: ChartSource, Standard & Poor's Financial Communications. This example is hypothetical and does not represent any actual investment. (CS000009)
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