cfconv (Financial Toolbox)

Cash flow convexity.

Syntax

c = cfconv(cf, yld)

Arguments

Description

c = cfconv(cf, yld)

returns the convexity c of a cash flow in periods.

Example

Given a cash flow of nine payments of $2.50 and a final payment $102.50, with a periodic yield of 2.5%:

cf=[2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 102.5];
c=cfconv(cf, 0.025)
c =
       90.4493 (periods)