Question
One way to improve the accurancy of price estimates using duration is to use convexity. This adjusts for the fact that the relationship between price
One way to improve the accurancy of price estimates using duration is to use convexity. This adjusts for the fact that the relationship between price and yield is convex. What does convex mean in this context? What is the effect on estimates of price based on duration caused by this convex shape?
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Financial Sector Reform And Privatization In Transition Economies
Authors: John Doukas, Victor Murinde, Clas Wihlborg
1st Edition
044482653X, 9780444826534
