Defi, Cryptocurrency, Bonds, Convexity, Finance.
with the face value, ie. $1000. Cash flow demonstration of a simulated bond In this example, you could purchase a 3 year bond for $1000, receive $25 every 6 months (representing a 5% coupon rate), and then have your $1000 returned. At the most basic analytical level, this would equate to $1150. But