Long-bond yield

A common observation in government bond markets is that the longest dated bond trades expensive to the yield curve. It also exhibits other singular features that have been the subject of research, for example, by Pboa (1998), wbicb we review in this chapter. The main feature of long-bond yields is that they reflect a convexity effect. Analysts have attempted to explain the craivexity effects of long-bond yields in a number of ways. These are discussed first. We then consider the volatility and convexity bias that is observed in long-bond yields. 

FIGURE 7.2 The theraetical behaviour of the long-bond yield. 

The Impact of Forward Rates on the Long-Bond Yield... 

ANALYSING THE CONVEXITY BIAS IN LONG-BOND YIELDS... 

These three factors are related but are affected differently by market-moving events. A report on the projected size of the governments budget deficit, for example, will not have much effect on two-year bond yields, but if the projections are unexpected, they could adversely affect long-bond yields. The type of effect—negative or positive—depends on whether the projections were higher or lower than anticipated. 

Sulfur dioxide (see above) as well as S02, SO , and SOj have been used as building blocks in three-component sulfone syntheses. It has long been known that aromatic sulfinic acids are easily available from diazonium salts and sulfur dioxide under copper catalysis . Mechanistically, aryl radicals as reactive intermediates add to sulfur dioxide generating arenesulfonyl radicals, which either take up an electron (or hydrogen) yielding a sulfinic acid or add to an olefinic double bond yielding final y -halogenated alkyl aryl sulfones (equation 78). 

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