Discuss the concept of duration its uses and limitations, Ask an Expert

Finance

Compute the effective duration for a bond with a current market value of $108. Bond price is expected to be $109.25 if yields fall by 50 basis points; bond price is expected to be $107.10 if yields rise by 50 basis points.

Discuss the concept of duration, its uses and limitations, and precisely how it measures risk.

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Basic Finance, Finance

Category:- Basic Finance
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