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2. Option-adjusted spread - Wikipedia

   en.wikipedia.org/wiki/Option-adjusted_spread

   Since prepayments typically rise as interest rates fall and vice versa, the basic (pass-through) MBS typically has negative bond convexity (second derivative of price over yield), meaning that the price has more downside than upside as interest rates vary. The MBS-holder's exposure to borrower prepayment has several names:

3. Day count convention - Wikipedia

   en.wikipedia.org/wiki/Day_count_convention

   Bond Calculator. Online calculation of interest and rate indicators with different day count conventions, created by SIX Swiss Exchange. Pricing of Game Options (in a market with stochastic interest rates) - Section Chapter II: A Little Bit of Finance, Section 1: Brief introduction to Financial Securities, from pages 26 to 33, formally mention ...

4. Check or calculate the value of a savings bond online - AOL

   www.aol.com/finance/check-calculate-value...

   Bond holders continue to earn interest for up to 30 years, making the bond even more valuable the longer it is kept. Bottom line Series EE savings bonds mature after 20 years, and they’ll ...

5. Bond valuation - Wikipedia

   en.wikipedia.org/wiki/Bond_valuation

   For example, for small interest rate changes, the duration is the approximate percentage by which the value of the bond will fall for a 1% per annum increase in market interest rate. So the market price of a 17-year bond with a duration of 7 would fall about 7% if the market interest rate (or more precisely the corresponding force of interest ...

6. The Relationship Between Bond Prices and Interest Rates - AOL

   www.aol.com/finance/relationship-between-bond...

   Bond prices and interest rates are closely related and can both be used to forecast economic activity, so investors should at least be aware of the basics: how interest rates affect bond prices ...

7. Duration (finance) - Wikipedia

   en.wikipedia.org/wiki/Duration_(finance)

   As interest rates change, the price does not change linearly, but rather is a convex function of interest rates. Convexity is a measure of the curvature of how the price of a bond changes as the interest rate changes. Specifically, duration can be formulated as the first derivative of the price function of the bond with respect to the interest ...

8. Bond Yield vs. Interest Rate: What Investors Need to Know - AOL

   www.aol.com/bond-yield-vs-interest-rate...

   Continue reading → The post Bond Yield vs. Interest Rate: Investing Guide appeared first on SmartAsset Blog. Yield and interest are highly-related when it comes to bonds. Your yield is based on ...

9. Bond convexity - Wikipedia

   en.wikipedia.org/wiki/Bond_convexity

   The more curved the price function of the bond is, the more inaccurate duration is as a measure of the interest rate sensitivity. [2] Convexity is a measure of the curvature or 2nd derivative of how the price of a bond varies with interest rate, i.e. how the duration of a bond changes as the interest rate changes. [3] Specifically, one assumes ...