Decks in this Class (11):

A Calculate And Interpret The Sources Of
a calculate and interpret the sources of return from investing in a fixedrate bond;
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B Define Calculate And Interpret Macaula
b define, calculate, and interpret Macaulay, modified, and effective durations;
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C Explain Why Effective Duration Is The
c explain why effective duration is the most appropriate measure of interest rate risk for bonds with embedded options;
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D Explain How A Bond S Maturity Coupon E
d explain how a bond’s maturity, coupon, embedded options, and yield level affect its interest rate risk;
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E Calculate The Duration Of A Portfolio
e calculate the duration of a portfolio and explain the limitations of portfolio duration;
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F Calculate And Interpret The Money Dura
f calculate and interpret the money duration of a bond and price value of a basis point (PVBP);
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G Calculate And Interpret Approximate Co
g calculate and interpret approximate convexity and distinguish between approximate and effective convexity;
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H Estimate The Percentage Price Change O
h estimate the percentage price change of a bond for a specified change in yield, given the bond’s approximate duration and convexity;
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I Describe How The Term Structure Of Yie
i describe how the term structure of yield volatility affects the interest rate risk of a bond;
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J Describe The Relationships Among A Bon
j describe the relationships among a bond’s holding period return, its duration, and the investment horizon;
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K Explain How Changes In Credit Spread A
k explain how changes in credit spread and liquid affect yieldto maturity of a bond and how duration and convexity can be used to estimate the price effect of the changes.
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