Positive convexity

Definition:

A property of option-free bonds that the price appreciation for a large downward change in interest rates will be greater (in absolute terms) than the price depreciation for the same downward change in interest rates.

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Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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Dedicated capital

Total par value (number of shares issued, multiplied by the par value of each share). Also called dedicated value.

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