Convexity and Bond Price Sensitivity

In this section

• Limitations of Duration
  Learn why duration alone cannot fully capture bond price behavior when yield changes are large or cash flows shift.
• Calculating Convexity
  Review how convexity is calculated and used to improve bond price sensitivity analysis.
• Using Convexity to Improve Duration Estimates
  See how convexity adjustments make duration-based price estimates more accurate across larger rate moves.