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Cash flow convexity



CFlowConvexity = cfconv(CashFlow,Yield) returns the convexity of a cash flow in periods.


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This example shows how to return the convexity of a cash flow, given a cash flow of nine payments of $2.50 and a final payment $102.50, with a periodic yield of 2.5%.

CashFlow = [2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 102.5];

Convex = cfconv(CashFlow, 0.025)
Convex = 90.4493

Input Arguments

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Cash flow, specified as a vector of real numbers.

Data Types: double

Periodic yield, specified as a scalar decimal.

Data Types: double

Output Arguments

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Convexity returned as a scalar.

Version History

Introduced before R2006a