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cfconv

Cash flow convexity

Syntax

CFlowConvexity = cfconv(CashFlow, Yield)

Arguments

CashFlow

A vector of real numbers.

Yield

Periodic yield. A scalar. Enter as a decimal fraction.

Description

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

Examples

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Compute the Convexity of a Cash Flow

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

See Also

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