The three conditions listed in CFAI text are:
has an initial market value that equals or exceeds the present value of the
has a portfolio Macaulay duration that matches the liability’s due date;
minimizes the portfolio convexity statistic
On (3) - does the convexity have to be above the convexity of the liability as well? I know this is the condition for multiple liabilities.
Or is this not specifically required because convexity of a single liability is 0.
Many thanks in advance.