Question
(a) Define the measure of Bond Duration and sketch how it is derived. (b) Show how you can use Duration to measure the impact of
(a) Define the measure of Bond Duration and sketch how it is derived.
(b) Show how you can use Duration to measure the impact of changes on interest rates on a Bank's equity.
(c) Explain the limitations of the Duration measure.
(d) Provide a real world example of potential losses of interest rate.
Hint: GTB pages 108114.
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Airline Finance
Authors: Peter S. Morrell
3rd Edition
0815387520, 9780815387527
