Fixed income instrument

chandniwadhwani92
Finance Junkie
Posts: 166
Joined: Mon Oct 06, 2014 7:36 am

Fixed income instrument

Postby chandniwadhwani92 » Sun Dec 21, 2014 9:26 am

Difference between money duration and price value of basis points???????
How shorter term bonds has high yield voltalituy

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

Fixed income instrument

Postby edupristine » Mon Dec 22, 2014 8:34 am

Money duration:- It measures the dollar price change for a 1% change in YTM.
PVBP:- It measures the absolute value change by change in 1 basis point in yield. For example if bond present value will get changes to 99.58 from 100 by change .01% to yield.


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