Bond Convexity Calculator

Duration alone underestimates price gains and overestimates price losses. Convexity corrects this non-linear relationship between price and yield.

For a bondholder, yes. Higher convexity means the bond rises more when rates fall and falls less when rates rise compared to a lower-convexity bond.

Callable bonds and mortgage-backed securities (MBS) can exhibit negative convexity because the issuer may call or prepay when rates drop.