Effective Convexity in Financial Formulas

Effective Convexity is a measure used in bond investing to assess the sensitivity of a bond’s duration to changes in interest rates. And is denoted by EC.

Formulas to find Effective Convexity in Financial

fxEffective ConvexityGo

List of variables in Financial formulas

fx Price of Bond When Yield is Decreased Go

fx Price of Bond When Yield is Increased Go

fx Initial Price of Bond Go

fx Change in Curve Go

FAQ

What is the Effective Convexity?

Effective Convexity is a measure used in bond investing to assess the sensitivity of a bond’s duration to changes in interest rates.

Can the Effective Convexity be negative?

{YesorNo}, the Effective Convexity, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

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