3.3 Duration Flashcards by Kaushik Purahoo | Brainscape

Q

What is the most important determinant of a bond price?

A

the discount rate

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Q

In order to approximate for the interest rate sensitivity of a bond, we can use the…

A

duration

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Q

Graph Bond rate vs Discount rate. If interest rates increase by X, price change =..

A

X * (dB/dD)

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