A volatility measure for bonds used in conjunction with modified duration in order to measure how the bond's price will change as interest rates change. It is equal to the negative of the second derivative of the bond's price relative to its yield, divided by its price. For example, since a non-callable bond's duration usually increases as interest rates decrease, its convexity is positive.
Related information about convexity:
- Bond convexity - Wikipedia, the free encyclopedia
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 ...
- Convex - Wikipedia, the free encyclopedia
Bond convexity, a measure of the sensitivity of the price of a bond to changes in interest rates; Convexity (finance), second derivatives in financial modeling ...
- Convexity Definition | Investopedia
A measure of the curvature in the relationship between bond prices and bond yields that demonstrates how the duration of a bond changes as the interest rate ...
- Advanced Bond Concepts: Convexity | Investopedia
In this section we take a look at what affects convexity and how investors can use it to compare bonds.
- convexity - definition of convexity by the Free Online Dictionary ...
con·vex·i·ty (k n-v k s -t ). n. pl. con·vex·i·ties. 1. The state of being convex. 2. A convex surface, body, part, or line. convexity [kənˈvɛksɪtɪ]. n pl -ties. 1. the state ...
- Duration and Convexity - University of Virginia
Macaulay Duration (effective maturity), Modified Duration, and Convexity. Each of these provides a more exact description of how a bond price changes relative ...
- Convexity Synonyms, Convexity Antonyms | Thesaurus.com
Synonyms for convexity at Thesaurus.com with free online thesaurus, antonyms, and definitions. Dictionary and Word of the Day.
- Convexity - Merriam-Webster Online
the quality or state of being convex. 2. : a convex surface or part. See convexity defined for English-language learners ». Examples of CONVEXITY ...