Example of Convexity A bond issuer, XYZ Corp., has two bonds on the market: Bond A and Bond B. Both bonds have a face value of $100,000 and a coupon rate of 5%.

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Green, Jerry R., and Walter P. Heller. "Mathematical Analysis and Convexity with Applications to Economics." In Handbook of Mathematical Economics, Vol. 1, edited by Kenneth J. Arrow and Michael D.