Graph algorithms constitute a fundamental area of computational research that focuses on the analysis and manipulation of graph structures, which represent systems of interconnected entities. In ...

Duration is the primary measure of interest rate sensitivity — it is the percentage change in price for a 1% change in interest rates. However, practitioners also look at convexity, which is the ...

Example of bond convexity The below graph demonstrates the relationship between bond duration and convexity. The bond’s duration is represented by the straight line plotted between ‘interest rates’ ...

Bonds are popular fixed income investment instruments and are often regarded as bearing relatively low-risk burdens. While bonds are less volatile than other investments, they are not risk-free, ...

To understand convexity, we need to look at what is meant by bond duration – the average time it takes to receive back the cash flows of a bond. It is a useful concept in bond trading because by ...