1. For readers who are already familiar with option theory, this characteristic can be restated as follows: When the coupon rate for the issue is below the market yield, the embedded call option is said to be “out-of-the-money.” When the coupon rate for the issue is above the market yield, the embedded call option is said to be “in-the-money.”

2. Mathematicians refer to this shape as being “concave.”

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