If we annualised the duration, we end up with the convexity.

Name: If we annualised the duration, we end up with the convexity.
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Question

Quizplus · Accepted Answer

Annualising the duration does not result in convexity. Duration measures the sensitivity of a bond's price to interest rate changes, while convexity measures the curvature or the degree of the curve in the relationship between bond prices and interest rates. They are related but distinct concepts in bond pricing.

If We Annualised the Duration, We End Up with the Convexity