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Documents Interest Rate Risk Interest rate changes have significant effects on many financial firms net...

Slide 1Interest Rate Risk Interest rate changes have significant effects on many financial firms net income, asset value, liability value and equity value (net difference…

Documents Investments, 8 th edition Bodie, Kane and Marcus Slides by Susan Hine McGraw-Hill/Irwin Copyright ©...

Slide 1Investments, 8 th edition Bodie, Kane and Marcus Slides by Susan Hine McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. CHAPTER…

Documents Yields & Prices: Continued Chapter 11. Learning Objectives Understand interest rate risk and the key...

Slide 1 Yields & Prices: Continued Chapter 11 Slide 2 Learning Objectives Understand interest rate risk and the key bond pricing relation Compute and understand the valuation…

Documents Managing Bond Portfolios. 13.1 INTEREST RATE RISK.

Slide 1 Managing Bond Portfolios Slide 2 13.1 INTEREST RATE RISK Slide 3  Inverse relationship between price and yield  An increase in a bond ’ s yield to maturity…