pierc

Kindly explain the keyword Duration in the context of the Security Analysis and Portfolio Management.

Hey guys! One more question stuck, anyone?
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chiara44
"-It is the weighted average on a present value basis of the time to full recovery of the principal and interest payments on a bond. It measures the weighted average maturity of a bond’s cash flows on a present value basis. It is represented as the time period. - Maturity is an inadequate measure of the sensitivity of a bond’s price change to changes in yields because it ignores the coupon payments and principal payment. Therefore, a measure of time designed to more accurately portray a bond’s average life, taking into account all of the bond’s cash flows, including both coupons and the return of principal at maturity. Such a measure of time is called as Duration. Source: http://in.docsity.com/en-docs/Bond_Price_Volatility_-_Security_Analysis_and_Portfolio_Management_-_Solved_Quiz_"
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rohit-sharma
Safety measures analysis will be the evaluation involving tradeable fiscal devices named investments. It may become grouped into personal debt securities, stocks, or a number of intercrossed of these two. Far more commonly, futures agreements as well as tradeable credit ratings derivatives are occasionally included. ...
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