Bond Yields and Prices

Accounts for the relationship between time and yield for bonds that are the same in every other respect—Liquidity Premium Theory. ... Can’t control interest rates but can control the coupon and maturity of the portfolio. Maturity is a poor measurement for a bond’s price change. ... 968.66 1826.44 Duration Calculation: 1826.44/968.66 = 1.89. ................
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