5.3 Convexity and Its Role in Bond Price Sensitivity

In this section

• Limitations of Duration in Bond Pricing and Investment Strategies
  Explore the limitations of duration in bond pricing, its assumptions, and the role of convexity for accurate bond price sensitivity analysis.
• Calculating Convexity in Bonds and Fixed Income Securities
  Explore the concept of convexity in bonds, understand its calculation, and learn how it enhances bond price sensitivity analysis.
• Convexity in Bond Pricing: Enhancing Duration Estimates for Accurate Bond Price Sensitivity
  Explore how convexity enhances duration estimates for more accurate bond price sensitivity analysis. Understand the role of convexity in bond pricing, especially in portfolios with long-duration bonds.