Jul 15, 2025 · Convexity is the curvature in the relationship between bond prices and bond yields. Convexity demonstrates how the duration of a bond changes as the interest rate changes. If a bond’s …

In finance, bond convexity is a measure of the non-linear relationship of bond prices to changes in interest rates, and is defined as the second derivative of the price of the bond with respect to interest …

Apr 29, 2024 · In a nutshell, the convexity of a bond refers to the relationship between bond yields and interest rates. Although not an exact science, if the ‘duration’ on a bond increases and the yield falls, …

Dec 8, 2025 · Convexity measures the non-linear curvature of bond prices, correcting duration for accurate risk management during volatile rate changes.

Sep 10, 2025 · Bond convexity is a way of explaining the sensitivity of a bond's secondary market price as it moves with changing interest rates. Convexity isn't fixed, and it also isn't linear, so in some...

Convexity, in financial terms, refers to the curvature of the relationship between a bond’s price and its yield. Unlike duration, which measures a bond’s sensitivity to interest rate changes, convexity takes …

Convexity measures the sensitivity of the bond’s duration to change its yield. Convexity is a good measure for bond price changes with greater fluctuations in the interest rates.

Feb 22, 2022 · In simple terms, convexity is a concept that covers the movement in bond prices. The concept of convexity states that the change in bond price when the interest rate decreases are …

The meaning of CONVEXITY is the quality or state of being convex. How to use convexity in a sentence.

Convexity is related to the curvature, i.e. the second derivative of the price function. Using convexity together with duration gives better approximation of the change in value given change in interest …