By Daniel ANKOMAH So, there I was in the office, surrounded by reports and charts, when the phone rang, and it was an old school colleague. After exchanging the usual pleasantries, he threw a question ...
You'll be able to see beyond the coupon payments and discern the value the bond may bring in the market. Being able to do a rough calculation will help you decide if holding or selling is your ...
It’s a more precise calculation. Duration may seem elusive, but it’s just one factor that affects a bond’s value. Some other factors include the following. This refers to the issuer's ...
This is especially true when you get into technical analysis and equations that use symbols ... Par value is simply the stated value of a share of stock or bond when it's first issued.
shorten the average duration of their bond holdings, or plan to weather the ensuing price decline by holding their bonds to maturity to recoup par value and collect coupon payments. Any bond ...
The calculation for modified duration is relatively ... For example, when interest rates rise, bond prices decline, and vice versa. Investors can calculate the modified duration for the bonds ...