What would be the formula for modified duration in the below case: A fund paying out money for 30 years amd there is a yield curve present. Could you please answer this query? Would function change to Duration divided by (1+Single rate calculated from the yield curve)?
@YuvrajSingh-yp5km3 жыл бұрын
Hey, What's the use of redemption value in duration since it wasn't used. Also how would it make a difference in case redemption value was changed
@srini196812
3 жыл бұрын
My bad... it was not required for the parameters!!! thanks for watching and pointing out.
@yogeshmaheshwari59924 жыл бұрын
How to find modified duration of portfolio
@srini196812
3 жыл бұрын
Using MDURATION function
@Kiyansh_Shaha Жыл бұрын
[A] Mod duration tells % change in price when 1% change in ytm. So if 0.50% change in ytm then do we need to divide the mod duration result by exactly half because we need to check the result when 0.50 % change in ytm, right? [B] what about Duration? Suppose ytm change by 0.50% then interpretation of Duration is also 1% change in ytm same like interpretation of Mod duration?
@srini196812
Жыл бұрын
A - you are right B - duration tells you the time within which your targetted cash flows or your yield will be achieved you may watch this video for better understanding of duration kzread.info/dash/bejne/oIGl29Z9iZPKhcY.html
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thnaks
What would be the formula for modified duration in the below case: A fund paying out money for 30 years amd there is a yield curve present. Could you please answer this query? Would function change to Duration divided by (1+Single rate calculated from the yield curve)?
Hey, What's the use of redemption value in duration since it wasn't used. Also how would it make a difference in case redemption value was changed
@srini196812
3 жыл бұрын
My bad... it was not required for the parameters!!! thanks for watching and pointing out.
How to find modified duration of portfolio
@srini196812
3 жыл бұрын
Using MDURATION function
[A] Mod duration tells % change in price when 1% change in ytm. So if 0.50% change in ytm then do we need to divide the mod duration result by exactly half because we need to check the result when 0.50 % change in ytm, right? [B] what about Duration? Suppose ytm change by 0.50% then interpretation of Duration is also 1% change in ytm same like interpretation of Mod duration?
@srini196812
Жыл бұрын
A - you are right B - duration tells you the time within which your targetted cash flows or your yield will be achieved you may watch this video for better understanding of duration kzread.info/dash/bejne/oIGl29Z9iZPKhcY.html