16.4 Duration and Convexity Calculations

In this section

• Modified Duration for Different Bonds
  Explore the concept of modified duration for different types of bonds, including zero-coupon, fixed-rate coupon, and floating-rate notes. Learn how to calculate modified duration and its significance in managing interest rate risk.
• Effective Convexity in Practice: Mastering Bond Pricing and Risk Management
  Learn how to compute Effective Convexity for bonds with embedded options and understand its role in estimating price changes due to interest rate movements. Compare callable and option-free bonds to optimize your investment strategies.