Convexity
What is it? A measure of the non-linearity of bond prices and yields. It is also a measure of the sensitivity of a bond (or a fixed-income portfolio) to twists in the yield curve. Convexity = (price (I=x-y))-(price (I=x+y))-2(price (I=x))/2(price (I=x))(y)^2 with x =Added By: Ava
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