Duration and Convexity of Bonds Video

The speaker discusses the concepts of duration and convexity.  Duration measures the percentage change in the bonds price based on the percentage change in the yield.  The speaker discusses how duration is a linear calculation and will not fully account for the curvature of the price to yield relationship.  This curvature, or convexity is added to duration and arrives at a more accurate measurement of the percentage of change in the bond price due to shifts in yields.