Question: - Provide at least three different interpretations/definitions for convexity that were discussed in class. Draw a graph showing the difference between predictions using duration
- Provide at least three different interpretations/definitions for convexity that were discussed in class. Draw a graph showing the difference between predictions using duration versus predictions using both duration and convexity. Provide a detailed mathematical example of how you would use convexity. (Do not use the exact same numbers used in lecture)
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CONVEXITY DEFINITION Convexity is a measure of the curvature in the relations... View full answer
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