there is a yield curve for callable bond, left part has negative convexity, right part is positive… the questions always mention that lower yield…compared to coupon rate…does that mean…lower than coupon rate? if so, the dividing point y* is the coupon rate??
I’m not sure what you’re trying to ask, can you rephrase?
i think she means the change in yield and how that affects the price of the bond (duration/convexity affect)??..so the change along the x axis which is yield and how that affects the y axis, which is price?