what is bond duration 
bond duration measures the change in a bond s price when interest rates fluctuate if the duration is high the bond s price will move in the opposite direction to a greater degree than the change in interest rates conversely when this figure is low the debt instrument will show less movement to the change in interest rates the bottom lineconvexity is a measure of the curvature of its duration or the relationship between bond prices and yields it describes how the duration of a bond changes in response to changes in interest rates convexity can impact the value of investments several factors impact the convexity of a bond including the bond s coupon rate maturity and credit quality bond investors can use convexity to their advantage by managing their bond portfolios to take advantage of changes in interest rates correction jan 23 2024 the article was amended to clarify that the higher the convexity the more the bond price will increase when rates fall and the less the bond price will drop when rates rise 