If two portfolios have the same duration, the change in their value when interest rates change will

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“If two portfolios have the same duration, the change in their value when interest rates change will be the same.” Explain why you agree or disagree with this statement.

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Bond Markets Analysis and Strategies

ISBN: 978-0133796773

9th edition

Authors: Frank J.Fabozzi

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Question Posted: Aug 22, 2015 07:26 AM

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If two portfolios have the same duration, the change in their value when interest rates change will

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Step by Step Answer:

While not the sole or best measure duration attempts to measure an assets price sensitivity to yield changes Duration does a good job of estimating an ...View the full answer

Bond Markets Analysis and Strategies

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