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Jak vypočítat Bond Convexity

Co je Bond Convexity?

Convexity measures how bond duration changes with yield, capturing nonlinear price-yield relationship missed by duration alone.

Průvodce krok za krokem

  1. 1Input bond parameters: coupon, yield, maturity
  2. 2Calculate convexity
  3. 3Estimate price change accounting for both duration and convexity

Worked Examples

Vstup
Long-duration bond with high convexity
Výsledek
Larger price gains in falling yields than losses in rising yields
Convexity positive for bullet bonds

Common Mistakes to Avoid

  • Using duration alone for large yield changes
  • Neglecting option-adjusted analysis for callable bonds

Frequently Asked Questions

Can convexity be negative?

Yes, for callable bonds when rates fall and issuer likely calls.

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