Hi all,
I cam across this " Holding constant yield and constant duration, the lower the coupon, the higher the convexity"
I tried to find an intuitive way to interprete this statment but I could not find.
Could anyone help me interprete this statement?
Is there any contradiction between this statement and the fact that, given costant yield, the lower the coupon , the higher the duration and convexity?
I cam across this " Holding constant yield and constant duration, the lower the coupon, the higher the convexity"
I tried to find an intuitive way to interprete this statment but I could not find.
Could anyone help me interprete this statement?
Is there any contradiction between this statement and the fact that, given costant yield, the lower the coupon , the higher the duration and convexity?
