Source: wikibot/bond-convexity
= Bond convexity
{wiki=Bond_convexity}
Bond convexity is a measure of the curvature in the relationship between bond prices and bond yields. It builds upon the concept of duration, which measures the sensitivity of a bond's price to changes in interest rates. While duration gives a linear approximation of price changes for small changes in yield, convexity provides a more accurate measure by accounting for the curvature in this relationship.