Convexity: Better Price-Change Estimates
This lesson is part of the course
In this lesson
You calculate the convexity of an 8-year bond and estimate the price change for a 1.50% yield rise with duration alone and with duration plus convexity.
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Lessons in this course
- Bond Cash Flows & Price: Coupons + Principal Locked
- Yield to Maturity with RATE & Current Yield Locked
- Accrued Interest: Clean vs Dirty Price (30/360) Locked
- Spot Rates: Pricing a Bond off the Zero Curve Locked
- Forward Rates from Spot Rates Locked
- Macaulay & Modified Duration: the Table Method Locked
- Convexity: Better Price-Change Estimates Locked
- Portfolio Duration & Immunisation Basics Locked