Modified Duration, Lecture 023, Securities Investment 101

by Andy Duncan on 05/12/2013

We conclude our lectures on ‘Duration’, before we move on to ‘Convexity’, with an explanation of ‘Modified Duration’ and its importance in predicting how individual bond prices will change on specific interest rate changes.

In passing, we cover the ‘MDURATION’ Excel function, and also dabble a little in different coupon payment frequencies, such as Annual, Semi-Annual (S/A), and Quarterly.

The full YouTube playlist of Securities Investment 101 lecture videos can be found by clicking here.

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