What does duration tell you about the sensitivity of a bond

Reference no: EM133369146

Question:

1.What does duration tell you about the sensitivity of a bond portfolio to interest rates? What are the limitations of the duration measure?

2.Positive convexity is said to be working in the investor's favor. Explain the reason.

3.What features of a bond affects its convexity? Explain clearly.

Reference no: EM133369146

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