Importance of Bond Duration
One of the regular risks, interest bearing instruments like bonds are prone to is the interest rate risk, which is the variation in the price of the instrument in relation to the changes in the general interest rates. The concept of ‘duration’ is the effective way of determining and mitigating the effects of interest rate alternations. It measures the sensitivity of the bond’s price to movements in interest rates and determines in how many years a bond shall repay its true cost.
This entry was posted
on Sunday, July 25th, 2010 at 12:00 am and is filed under Uncategorized.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
[...] Importance of Bond Duration « smartyes.com [...]
Earn $3.854/Day Sending Email Out with Super Fast Software!
[...] Importance of Bond Duration « smartyes.com [...]