Month: February 2022

Convexity is a desirable property for bond investors because it means that the bond’s price will increase more when the interest rate falls than it will decrease when the interest rate rises. This creates a cushioning effect that protects the bond’s value from interest rate volatility. Some bonds, such as callable bonds, have negative convexity, …

Bond Convexity Calculator: How to Calculate Bond Convexity: Step by Step Tutorial Read More »

Convexity is a desirable property for bond investors because it means that the bond’s price will increase more when the interest rate falls than it will decrease when the interest rate rises. This creates a cushioning effect that protects the bond’s value from interest rate volatility. Some bonds, such as callable bonds, have negative convexity, …

Bond Convexity Calculator: How to Calculate Bond Convexity: Step by Step Tutorial Read More »