May 14, 1999 . What are the practical uses for bond duration and convexity. . Sounds like the

May 20, 2011 . I'm hoping someone could help me understand this subject better. Basically I am

Basically, duration is a weighted average of the maturity of all the income streams

Interest Rate Sensitivity and Bond Duration. Andrew Ellul . Duration. Look at the

Duration reflects the timing of all payment streams from a bond including

For example, if a bond has a duration of 5 years and interest rates increase by 1

On the other hand, your bonds will increase in value by 5% if interest rates fall 1

The duration of a bond, or a bond fund, is a measure of its . so its duration is

k e t V alu e. Yield To Maturity. Convexity of Bond Curve. Bond Duration. We

A bond's duration is a measure of its value over time. The more fluctuation there

is the fraction of a month between settlement date and first cash flow date. .

The first bond has 30 years to maturity, the second 20 years, and the third 10

largest factor affecting a bond's interest rate sensitivity and therefore its duration

Nov 2, 2011 . Bond Duration: What It Is and Why It Matters. The maturity of a fixed-income

Capital gain or loss on sale of bond before maturity. Illustration: . . A measure of

The modified duration of a bond is a measure of its price sensitivity to interest

http://www.eurojournals.com/finance.htm. Modelling Bond Duration and

Oct 2, 2010 . In 1938, Frederick Macaulay termed the effective-maturity concept the duration of

two bonds with different coupon rates and maturities? We use duration.

Feb 19, 1998 . The duration measure for bonds is a invention that allows bonds of different

What are the differnces between the term "Maturity" and > "Duration" means in

An increase in interest rates causes bond prices to fall, and a decrease in interest

Duration, Interest, and Maturity. . 107: Secured and Unsecured Bonds . For

Feb 27, 2008 . Bonds are specific types of loans to Government(s) be they foreign, federal or

May 26, 2010 . Adam Bold, founder and CEO of The Mutual Fund Store, explains how interest

Frequently asked questions about muni bonds and municipal bond investing. .

Duration and Bond Interest Rate Risk. . To illustrate this, let's suppose you

For bonds that have embedded options, such as putable and callable bonds,

(See Bond Duration for a derivation of the formula as the weighted average of the

. CouponRate, Settle, Maturity) computes the Macaulay and modified duration of

Two-year 8% coupon bond with duration of 1.8853 years; Zero-coupon bond with

Since duration measures the sensitivity of a bond (or more generally, of a

May 11, 2009 . Bond Maturity and Duration. What the heck does "duration" mean? Why a bond's

The higher a bond's duration, the higher the interest rate risk. Duration measures

effective maturity on the zero-coupon bond. Calculating Duration. To calculate

The settlement date is the date a buyer purchases a coupon, such as a bond. . If

Learn about fixed income concepts, including the yield curve and duration. .

The "maturity" of a bond is the remaining time to its last payment. . exact duration

It's possible to approximate how much a bond's price is likely to rise or fall when

Jul 8, 2009 . As discussed in Chapter 3, extending the maturity of a premium bond increases

Feb 23, 2012 . We'll look at some important factors of bond fund analysis, and then . As an

Duration is the most commonly used measure of risk in bond investing. Duration

For Bond Duration Calculator calculate duration, modified duration, annual

Jan 1, 2007 . All of the components of a bond—price, cou- pon, maturity, and interest in the

Oct 22, 2009 . When you look at the stats for a bond mutual fund, you'll see both average

Zero-Coupon Bond – Duration is equal to its time to maturity. . The fulcrum, or

Bond Funds' Duration vs. Maturity - interest rate, Muni, Short-Term Bond, average

Also, if you buy a bond with the intention selling prior to maturity, then the final

Macaulay Duration (effective maturity), Modified Duration, and Convexity. Each of

This Microsoft Excel spreadsheet explores interest rates and bond prices. . line)

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