Function File: cfConv = cfconv (cf, yield)

Calculate convexity cfConv from given fixed-paid cash flow cf and period yield yield.

Reference:

[1] http://thismatter.com/money/bonds/duration-convexity.htm

[2] http://en.wikipedia.org/wiki/Bond_convexity

See also: cfdur.

Demonstration 1

 cf = [2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 102.5];
 yield = 0.025;
 cfConv = cfconv( cf, yield );
 %--------------------------------------------------
 % Input cash flow and yield, output convexity

Package: financial