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I agree with all that has been said. I'm just not sure if it answers my question. I'm not asking whether the callable bond has positive or negative convexity... I'm not even sure that is a reasonable question since it certainly depends on the specific level of rates relative to the coupon...

Forget everything above. Do you agree that the writer of a call option is short convexity?

Thanks, but I'm not talking about a position in a straight bond + a callable bond. I'm just talking about a callable bond by itself. The straight bond is long convexity. A callable bond is the equivalent of a straight bond and a short call option. A short call option is short...

I am new here and wasn't sure where else to post this question, so I apologize in advance if there was a better place to post. Question is: Is a long position in a callable bond net long convexity? I get that a callable has negative convexity at rates below the coupon rate (slightly less...