What is convexity? Discuss its potential usefulness in evaluating bonds.

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Contemporary Financial Intermediation

ISBN: 9780124052086

4th Edition

Authors: Stuart I. Greenbaum, Anjan V. Thakor, Arnoud Boot

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Question Posted: Jan 12, 2024 04:00 AM

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What is convexity? Discuss its potential usefulness in evaluating bonds.

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Convexity is a measure of the rate of change of dollar duration as yields change Convexity implies that prices rise at an increasing rate as yields fa...View the full answer

Contemporary Financial Intermediation

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