What do you mean by convexity of a bond in business management?
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Explanation:
Convexity is a measure of the curvature, or the degree of the curve, in the relationship between bond prices and bond yields. ... Portfolio managers will use convexity as a risk-management tool, to measure and manage the portfolio's exposure to interest rate risk.
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Answer:
Convexity is the measure of curvature in the relationships between bond prices and Bond yields
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