1. Explain to the manager of the orgs pension plan why yield curve and the concepts of duration and bond convexity are such important tools in managing the risks of a bond portfolio.  Be sure to define each of these concepts and explain their applications in management of fixed-income portfolios. 

Answer rating: 100% (QA)

The yield curve duration and bond convexity are critical tools for managing risks in a bond portfolio The yield curve represents the relationship betw... View the full answer