Formula for Bond Convexity Calculation :

Convexity is a measure of the curve in the relationship between a bonds price and a bonds yield, as it also takes into account the bonds duration. The duration measures the sensitivity of an asset in relation to external market forces, such as interest rates.

Where,

P - Bond Price

Y - Yield to maturity in decimal form.

T - Maturity in years.

CF_t - Cash flow at time t.