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MTH001 - Elementary Mathematics

Question(s) similar to the following:

Many analysts refer convexity as more precise version of duration. Do you agree with this statement?

Question 1: Many analysts refer convexity as more precise version of duration. Do you agree with this statement?

Answer: Suggest Edit

Yes I agree because Bond convexity is a bit of a perplexing topic for many. Some refer to convexity as the degree of curvature that exists in the price to yield relationship while others refer to convexity as the second derivative, or a more precise version of duration, which would be added to duration to get that much more precise.

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Question 2: Many analysts refer convexity as more precise version of duration. Do you agree with this statement?

Answer: Suggest Edit

Yes I agree because Bond convexity is a bit of a perplexing topic for many. Some refer to convexity as the degree of curvature that exists in the price to yield relationship while others refer to convexity as the second derivative, or a more precise version of duration, which would be added to duration to get that much more precise.
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