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Dollar duration and convexity are used to characterize and to control the riskiness of fixed income securities. However, several examples were presented in the lectures

Dollar duration and convexity are used to characterize and to control the riskiness of fixed income securities. However, several examples were presented in the lectures to 2 exhibit the limitations of these measures. One way we might attempt to improve these measures is by making them more robust to non-uniform shifts in the term structure. From the expression for the price of a fixed income security that makes annual pay- ments over four years,

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