Question
a) Define the concept 'yield on a bond' and explain the different measures that are important for analysing a bonds performance. b) Define interest rate
a) Define the concept 'yield on a bond' and explain the different measures that are important for analysing a bonds performance. b) Define interest rate risk. Explain the two types of interest rate risk. Explain duration and bond properties and describe how an investor with a given holding period can use duration to reduce interest rate risk.
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Introductory Econometrics For Finance
Authors: Chris Brooks
2nd Edition
052169468X, 9780521694681
