Duration and Convexity Explained Visually: Macaulay vs Modified Duration | CFA® Program Level I

Duration and convexity explained visually: Macaulay vs modified duration, effective duration, DV01 and bond convexity on one picture. ▶ Try a full module of our Level I platform free: https://sharpeandclear.com/go/dc ▶ The full Level I course, all 10 topics: https://sharpeandclear.com/?src=yt-dc ▶ Next lesson, spot, par & forward rates: Coming soon ▶ Bonds series (playlist):    • Bonds & Fixed Income, Explained Visually   Chapters 0:00 Intro: what you’ll learn, and a puzzle 1:10 Our platform 1:49 Why bond prices fall when yields rise 3:02 Macaulay duration explained 4:28 Macaulay vs modified duration 5:42 Money duration and DV01 6:22 Effective duration vs modified duration 7:52 Bond convexity explained 8:58 Duration and convexity: the full formula 9:49 Bond duration vs maturity: the puzzle solved 10:49 How to calculate duration and convexity: worked example 12:47 Practice question 1 13:53 Practice question 2 14:48 Recap: slope and bend, as in the option Greeks 15:29 More in the playlist For CFA® Program Level I candidates and finance students: the intuition on one price–yield curve, each formula term by term, a worked example and 2 exam-style practice questions. Educational content only, not investment advice. Not affiliated with or endorsed by CFA Institute. CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. #BondDuration #FixedIncome #Bonds