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What's the meaning of Convexity?

帮考网校2020-10-12 15:24:59
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Convexity refers to the degree of curvature of a curve or surface. In finance, convexity is a measure of the sensitivity of a bond's price to changes in interest rates. A bond with higher convexity will have a greater price change for a given change in interest rates than a bond with lower convexity. Convexity is an important factor in bond pricing and risk management.
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