Jul 15, 2025 · Convexity is the curvature in the relationship between bond prices and bond yields. Convexity demonstrates how the duration of a bond changes as the interest rate changes. If a bond’s …

In finance, bond convexity is a measure of the non-linear relationship of bond prices to changes in interest rates, and is defined as the second derivative of the price of the bond with respect to interest …

Sep 10, 2025 · Bond convexity is a way of explaining the sensitivity of a bond's secondary market price as it moves with changing interest rates. Convexity isn't fixed, and it also isn't linear, so in some...

Convexity measures the sensitivity of the bond’s duration to change its yield. Convexity is a good measure for bond price changes with greater fluctuations in the interest rates.

Convexity, in financial terms, refers to the curvature of the relationship between a bond’s price and its yield. Unlike duration, which measures a bond’s sensitivity to interest rate changes, convexity takes …

Apr 10, 2025 · In this article, we have discussed how to measure bond convexity using two formulas: the Macaulay convexity and the modified convexity. We have also explained how to interpret bond …

The meaning of CONVEXITY is the quality or state of being convex. How to use convexity in a sentence.

Mar 22, 2024 · Convexity in economics and finance is a measure that shows how the duration of a bond or another financial instrument changes with respect to interest rates.

Basically, our various notions of convexity have implications about the nature of minima. It should not be surprising that the stronger conditions tell us more about the minima.

Aug 19, 2025 · Convexity measures the curvature of a bond’s price–yield relationship. It adjusts the duration estimate so price changes are more accurate for larger yield moves.