Topic: Bond Duration
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Why is duration of bond important?
Duration is the weighted average number of years necessary to recover the initial cost of the bond • It allows comparison of effective lives of bonds that differ in maturity, coupon. • It is used in bond management strategies particularly i... Read More »
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How to Calculate the Modified Duration of Your Bond Portfolio
Modified duration estimates bond price changes. Investors can use modified duration to assess the price volatility of individual bonds or an overall portfolio. Frederic Macaulay developed the Macaulay duration in 1938 to measure the number ... Read More »
Source: http://www.ehow.com/how_10019927_calculate-modified-duration-bond...
What is a bonds duration?
Duration is defined as the percentage change in a bond's price function with respect to... Read More »
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Bond Duration
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Answers to Other Common Questions
Effective duration can be estimated using modified durat...
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http://finance.thinkanddone.com/online-b… Semi Annual Compounding of interest Duration: 15.841 years Modified Duration: 15.45 years Annual Compounding of interest Duration: 16.141 years Modified Duration: 15.37 years Source(s): http://think...
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Source: http://answers.yahoo.com/question/index?qid=20120412132240AAw5w4I
bond coupon rates and yield rates have very similar effects and a very similar relationship to duration, lemme explain, by first explain durations effects in relation to interest rates, then yields and finally you can surmise that relations...
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Source: http://wiki.answers.com/Q/What_is_relationship_between_a_bond_cou...
Bond duration is the easiest measure of interest rate sensitivity of a bond. For instance, if a bond has a duration measure of 4, it means that for every 1 percentage change in the market interest rates, the bond value changes by 4%. The du...
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Source: http://answers.yahoo.com/question/index?qid=1006042203225
Bond duration depends on the time line and amount invested. There are two types - ...
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Zero coupon bonds have a duration equal to the bonds time to maturity,which make...
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