Bond convexity closed-form formula (Blake and Orszag):
D = coupon payment per period
P = present value (price)
B = face value
i = discount rate per period (half-year)
a = fraction of a period remaining until next coupon payment
m = number of coupon dates until maturity
Look up Bond duration closed-form formula
Famous quotes containing the words bond and/or formula:
“Don’t go on a man’s bond in public, nor guarantee his debts in private.”
—Chinese proverb.
“In the most desirable conditions, the child learns to manage anxiety by being exposed to just the right amounts of it, not much more and not much less. This optimal amount of anxiety varies with the child’s age and temperament. It may also vary with cultural values.... There is no mathematical formula for calculating exact amounts of optimal anxiety. This is why child rearing is an art and not a science.”
—Alicia F. Lieberman (20th century)