# Bond Convexity: Definition, Formula & Examples

Instructions:

question 1 of 3

### _____ is a measure of the curve in the relationship between a bond's price and a bond's yield.

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### 2. If convexity is 0, then the relationship between interest rates and bond prices would be a _____.

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Answer these helpful study questions to get an idea of what you know about the convexity of a bond. You'll be assessed on key points such as the term for the curve measurement in the relationship between a bond's yield and price and how to calculate a bond's price.

## Quiz & Worksheet Goals

Discover how much you understand about these topics:

• Relationship between bond prices and interest rates when convexity is 0
• Basic rule when calculating bond price changes based on interest rate changes
• Increases and decreases in interest rates and how they relate to bond prices

## Skills Practiced

• Making connections - use understanding of the concept of interest rates to recognize how they're connected to bond prices
• Information recall - access the knowledge you've gained regarding the calculations associated with figuring the price of bonds