Convexity for bond price
Measure di curve for a fixed bond price against im yield.
Your numbers
Convexity on yearly basis
Estimate for learning with your assumptions; no live rates, tax rules or investment recommendations. Returns fit dey negative and no get guarantee. E assume equal coupon periods and no embedded options.
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Formula
Use K = Σ[k(k+1)CFₖ/(1+y/m)^(k+2)]/(Pm²). CFₖ na payment for coupon period k, P na bond price, y na nominal yearly yield fraction, and m na payments per year. K estimate local price curvature as yield change.
Measure di curve for a fixed bond price against im yield.
Example wey show the calculation
- Di face value
- 1000
- Yearly coupon rate (%)
- 5
- Nominal yearly yield (%)
- 5
- Full years before maturity
- 5
- Coupon payments for each year
- 2
- Convexity on yearly basis
- 22.6123221851
Where e fit work and limits
Estimate for learning with your assumptions; no live rates, tax rules or investment recommendations. Returns fit dey negative and no get guarantee. E assume equal coupon periods and no embedded options.
We check inputs for missing values and allowed ranges. Result wey pass the finite numeric range no go show. Rounding affect wetin display, while calculation use the model numeric precision.
Check your units and assumptions before you rely on result. Changing label no convert currency or physical unit.
Version of di formula: 2631f68d4f28 · Example don get check: