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Q: What is the modified duration of a zero coupon bond?

A:Zero coupon bonds have a duration equal to the bonds time to maturity,which make... Read More

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Q: What is the duration of a 5 year zero coupon bond?

A:Zero coupon bonds have a duration equal to the bond's time to ... Read More

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Q: What is the Macauley duration of a zero-coupon bond?

A:The Macaulay duration is the weighted average maturity of the bond where the weights are the relative discounted cash flows in each period. In a formula: MD = (... Read More

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Q: How to Buy Zero Coupon Bonds.

A:Hold Zero Coupon Bonds Until Maturity. Purchase zero coupon bonds as a less-volatile alternative to playing the stock market. While not risk free, bonds are sti... Read More

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Q: What Is a Zero-Coupon Bond?

A:A bond's coupon rate is the interest paid by a bond in relation to the bond's face amount. For example, a $10,000 bond with a 6 percent coupon pays an investor ... Read More

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modified duration of a zero coupon bond

Duration for a 10 year zero-coupon bond with 10% yield to maturity is:.The Effective/Modified Duration of a zero coupon bond does not equal .
Zero-Coupon Bond.Duration is equal to its time to maturity. 2.The four types of durations are Macaulay duration, modified duration, effective duration and .
What is the modified duration of a 7-year zero-coupon bond with BEY=4.348%? This isn t a L3 question, but some samples touched on this.
Duration.Buzzwords.Parallel shift.Basis points.Modified duration. Macaulay.For zero-coupon bonds, there is an explicit formula relating the zero price .
Duration.Buzzwords.Parallel shift.Basis points.Modified duration. Macaulay.Professor Carpenter. Duration. 4.For zero-coupon bonds, there is a simple.
It is equal to the maturity if and only if the bond is a zero-coupon bond. Modified duration, on the other hand, is a derivative (rate of change) or price sensitivity .