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Provide a short note on convexity, highlighting the following issues: 1) What does convexity mean, in the context of fixed income? 2) How do you
Provide a short note on convexity, highlighting the following issues:
- 1) What does convexity mean, in the context of fixed income?
- 2) How do you obtain convexity? Which instruments/ portfolios have high convexity?
- 3) Is it a desirable characteristic of instruments? How does it "help" or hurt?
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Convexity is a measure of the curvature of the relationship between bond prices and yields In the co...
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Entrepreneurial Finance
Authors: Philip J. Adelman; Alan M. Marks
6th edition
9780133099096, 133140512, 133099091, 978-0133140514
