Meaning EFFECTIVE CONVEXITY: The convexity of a bond calculated using cash flows that change with yields
More terms such as Effective convexity in Dictionary E.
- Definition Expiration Cycle:
- Examples options on a particular security expire. A given option will be placed in one of three cycles; the January cycle, the February cycle, or the March cycle. At any time, an option has contracts with effective convexity definition.
- Definition Earnings Per Share (EPS):
- Examples profit divided by its number of outstanding shares. If a company earning $2 million in one year had $2 million shares of stock outstanding, its EPS would be $1 per share. In calculating EPS, the effective convexity explain.
- Definition Equilibrium Market Price Of Risk:
- Examples capital market line (CML). Since the C.M.L. represents the expected return offered to compensate for a perceived level of risk, each point on the line is a balanced market condition, or equilibrium effective convexity what is.
- Definition Effective Debt:
- Examples The total debt owed by a firm to its creditors effective convexity meaning.
- Definition Either/Or Facility:
- Examples An agreement permitting a bank customer to borrow either domestic dollars from the bank's head office or Eurodollars from one of its foreign branches effective convexity abbreviation.
