Business, Legal & Accounting Glossary
Convexity is a measure of the curvature, or the degree of the curve, in the relationship between bond prices and bond yields. Convexity demonstrates how the duration of a bond changes as the interest rate changes.
It forms an arc of a circle of which the convexity turns slightly to the north; neither bay nor promontory breaks the regularity of its outline.
In all such cases, there is no component to plan convexity, any curvature being entirely orthogonal to the x-y plane.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Convexity are sourced/syndicated and enhanced from:
This glossary post was last updated: 2nd February, 2020 | 0 Views.