Deriving Duration and Convexity of a Bond

[@csbhatnagar]

Thanks for your feedback. On rechecking, I notice that there is no mistake and the formula is correct. For more information, refer to:
Introduction to Cashflow Analysis., Robert J. Donohue CCIM, Regent School Press,
ISBN 978-1-886654-09-9

[@ricardofraser4243]

convexity is the second derivative. just derive from the first one ... clear explanation here!

[@seagullsongable]

Great video. It's very easy to understand. Thank you very much!

[@ragsanoor]

Thank you Sir.. A big thank you for explaining it so lucidly...from India

[@LeslieTzy]

at 3:30 how can we assume 1/(1+Y) approximates 1? You stated that for small changes in Y, this holds. But the above expression is Y, not delta Y. I'm confused.

[@aborucu]

it's not change in yield correct, i guess it's a simplifying assumption and thats why in textbooks they mention duration is approximately equal to..

[@wmaracaba]

This really helps. Thanks a bunch.

[@Orgasmotronic]

excellent exposition!

[@abooth1707]

Thank you, very intuitive now!

[@FelixFrost]

you are the boss!

[@mohance]

Excellent! Thanks.

[@prateekdaniels]

Thank you Sir

[@FelixFrost]

Aw by the way...
In my teacher's notes the function for convexity was exactly the same as yours but he also divided it by 2.
Basically every function of his was 0.5*(convexity function in this video)
...could you explain why would he do that?

[@sshome01]

probably because he assumed semi annual compounding.

[@glennschultz1739]

Nice