All Questions
2
questions
5
votes
1
answer
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Why does a barbell portfolio have higher convexity than a bullet porfolio
I cannot quite understood absolutely why a barbell portfolio has higher convexity than a bullet porfolio.
I can easily understand how the parallel line represents duration but I cannot see what the ...
- 2,542
-3
votes
2
answers
1k
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Why Is Bond Time Value Risk Not Considered in Bond Immunization?
I know bond portfolio immunization includes duration and (if the hedging period is longer) convexity matching. These are equivalent to taking the first and second partial derivatives of the bond ...
- 2,806