Bond Convexity, Bond Convexity Calculation and Formula Explained
Bond Convexity is a direct measure of the duration sensitivity of a bond when its interest rate is changing. You can use the bond convexity formula to calculate interest rates.
Bond Convexity is a direct measure of the duration sensitivity of a bond when its interest rate is changing. You can use the bond convexity formula to calculate interest rates.
Private bonds are used to finance private projects rather than public bonds which are used to finance public operations and developments. In this article we explore the two types of bond and see how each compares with each other. We also look at how private purpose bond interest rates are calculated and how this differs from public purpose bond interest calculation.