Скачать или смотреть Bond Convexity Is a Desirable Trait

Higher convexity is a desirable characteristic for #bonds and #fixedincomeinvestments because you receive higher price increases as #interestrates decrease and lower price decreases as interest rates increase compared to a similar bond with lower convexity. Convexity is the second derivative of price with respect to interest rates and is a measure of how curved the price and interest rate relationship is for a particular bond. All things equal, the longer the maturity, the lower the coupon #payments and the lower the discount rate, the higher the convexity of a bond. Since high convexity is a desirable trait, you should expect to pay more for a bond with higher convexity than for a similar bond with lower convexity. #investing #investments #market #markets #cfainstitute #caia #frm

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