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Convexity If exists, use the definition 2 . 1 1 and to show that for a convex function ( for a concave function Formula 2

Convexity
If exists, use the definition 2.11 and
to show that for a convex function ( for a concave function Formula2.11).
For a bond with periodic coupon payments, the th cash flow is discounted using . Show that is a convex function of .
Show that Formula 2.5, for the price of a coupon bond is a convex function of yield. [Hint: Use the result from part (b) of this problem.]

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