23.2. Prove that if the present value of a cash flow is represented by PV (cash...

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23.2. Prove that if the present value of a cash flow is represented by PV (cash flow) exp(rtt)

and for all t’s, rt shifts up by a constant , the derivative of the percentage change in the bond’s price with respect to equals the negative of present value duration; that is

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Financial Markets And Corporate Strategy

ISBN: 9780071157612

2nd Edition

Authors: Mark Grinblatt, Sheridan Titman

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Question Posted: Jul 23, 2024 10:00 AM

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23.2. Prove that if the present value of a cash flow is represented by PV (cash...

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Financial Markets And Corporate Strategy

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