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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…

Documents Pricing Fixed-Income Securities

The Relationship Between Interest Rates and Option-Free Bond Prices Bond Prices A bond’s price is the present value of the future coupon payments (CPN) plus the present…

Documents CHAPTER 16

Slide 1 CHAPTER 16 Managing Bond Portfolios Investments, 8th edition Bodie, Kane and Marcus Slides by Susan Hine McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill…

Documents Duration, Convexity and Immunization

Dr. Himanshu Joshi Change in interest rates results in change in prices of bonds in reverse direction. Interest rate increase = Price will fall to offer in-built capital…

Documents Pricing Fixed-Income Securities

The Relationship Between Interest Rates and Option-Free Bond Prices Bond Prices A bond’s price is the present value of the future coupon payments (CPN) plus the present…

Documents Dr. Himanshu Joshi. Change in interest rates results in change in prices of bonds in reverse...

Dr. Himanshu Joshi Change in interest rates results in change in prices of bonds in reverse direction. Interest rate increase = Price will fall to offer in-built capital…

Documents BOND STRATEGIES FNCE 455 Class Session #11 Lloyd Kurtz Santa Clara University 1.

Bond Strategies FNCE 455 Class Session #11 Lloyd Kurtz Santa Clara University * The Strategies Interest Rate Anticipation Cash Flow Matching Duration Management * Interest…