Macaulay Duration | Bond Duration Explained | Interest rate risk | FIN-Ed
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5 жыл бұрын#fin-ed
Macaulay Duration | Bond Duration Explained | Interest rate risk | FIN-Ed
In this video, I will explain what bond’s duration tells an investor and how it is calculated.
Duration measures a fixed income’s sensitivity to changes in interest rate. Duration is a key concept in bond portfolio management
Thanks for watching .....!!!
@brandonspiegel2293 4 жыл бұрын
Thanks for the helpful video!!!!
@goblinslayer9693 2 жыл бұрын
Thanks for the sharing!! It's easy to understand
@yanxiangli4253 3 жыл бұрын
For the formula you showed in the last example, you didn't multiply the price which was written in the formula when you calculate the result.
@j-manthesuper4055 2 жыл бұрын
I'm taking his class right now, and I believe you just ignore that second price. It was a mistake. Just putting this here for any future students that run into the same issue. :)
@Nick-yn2uz 3 жыл бұрын
Quick question: If I see that an investment grade corporate bond has a duration of 6, I understand that a 1% move in rates results in -6% in the bond price, but WHAT RATES ARE WE TRACKING? The 10 Yr treasury? 5 year treasury? Thank you!!
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