decimal places when calucalating Convexity

CFA Level I
#1

Hi folks, I have been doing some convexity problems and I continue to find myself setting my calculator to 6 decimal places. My default was at 4 decimal places but apparently convexity is so decimal sensitive any rounding can highly skew the answer. What are you guys setting your calculators to? regards

#2

5 decimals is the best. :slight_smile: At least this is what I use.

#3

haha thanks strange i think I will keep change it to 5 Stalla told me 4… -_-

#4

what’s wrong with a floating decimal? i don’t like having a bunch of unnecessary zeros. 1/4 = 0.25 opposed to 0.2500. but that’s just me

#5

default is 4 places, according to STALLA tip: know why bonds with options are negative convex

#6

dspapo Wrote: ------------------------------------------------------- > what’s wrong with a floating decimal? i don’t > like having a bunch of unnecessary zeros. 1/4 = > 0.25 opposed to 0.2500. but that’s just me How do you set your calculator to floating decimal?