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Bond convexity and Interest rate

Shortcuts: Differences, Similarities, Jaccard Similarity Coefficient, References.

Difference between Bond convexity and Interest rate

Bond convexity vs. Interest rate

In finance, bond convexity is a measure of the non-linear relationship of bond prices to changes in interest rates, the second derivative of the price of the bond with respect to interest rates (duration is the first derivative). An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed (called the principal sum).

Similarities between Bond convexity and Interest rate

Bond convexity and Interest rate have 2 things in common (in Unionpedia): Present value, Yield to maturity.

Present value

In economics and finance, present value (PV), also known as present discounted value, is the value of an expected income stream determined as of the date of valuation.

Bond convexity and Present value · Interest rate and Present value · See more »

Yield to maturity

The yield to maturity (YTM), book yield or redemption yield of a bond or other fixed-interest security, such as gilts, is the (theoretical) internal rate of return (IRR, overall interest rate) earned by an investor who buys the bond today at the market price, assuming that the bond is held until maturity, and that all coupon and principal payments are made on schedule.

Bond convexity and Yield to maturity · Interest rate and Yield to maturity · See more »

The list above answers the following questions

Bond convexity and Interest rate Comparison

Bond convexity has 28 relations, while Interest rate has 107. As they have in common 2, the Jaccard index is 1.48% = 2 / (28 + 107).

References

This article shows the relationship between Bond convexity and Interest rate. To access each article from which the information was extracted, please visit:

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