Bond Convexity
In finance, convexity is a measure of the sensitivity of the duration of a bond to changes in interest rates, the second derivative of the price of the bond with respect to interest rates (duration is the first derivative). In general, the higher the convexity, the more sensitive the bond price is to the change in interest rates. Bond convexity is one of the most basic and widely-used forms of convexity in finance.
Read more about Bond Convexity: Calculation of Convexity, Why Bond Convexities May Differ, Mathematical Definition, Application of Convexity
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