when applying this to estimate a bond s price using duration a convexity adjustment must be used the formula for the convexity adjustment is 
convexity adjustment convexity x 100 x dy 2in this example the convexity adjustment would be convexity adjustment 25 x 100 x 0 01 2 0 25finally using duration and convexity to obtain an estimate of a bond s price for a given change in interest rates an investor can use the following formula bond price change duration x yield change convexity adjustment