Convexity Please explain how to derive the first formula to get the formula at the bottom....

Question

Question

Derive ] Convexity = + deep e Show steps here Show (Fi Convexity - IMS Pll+7)

Convexity

Please explain how to derive the first formula to get the formula at the bottom.
I.e. how go from one to the other.

Thank you!

Answer 1

Answer #1

CFE (ity ) q cft te (ityt ty H = a²p dy 5 ta (tt) C Ft ta da I dye = 12CFalt²tt) = Connexity Peltyp (ltyt P= Bond price y = y

Answer 2

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