By Daniel ANKOMAH So, there I was in the office, surrounded by reports and charts, when the phone rang, and it was an old ...

You may have even heard the phrase, “If interest rates rise, bond prices will drop.” Bonds are sensitive to interest rate risk, which means that when interest rates rise, the value of bonds ...

The exact formula is: The current yield provides a more immediate evaluation of what a bond is paying, as it is calculated by dividing its current value by its annual interest payment. Yield to ...

Modified duration is a formula that measures the sensitivity ... Let's suppose you have a bond with a face value of $1,000 that matures in three years. This bond has an annual coupon rate (the ...