Explore the intricacies of measuring interest rate risk, focusing on the inverse relationship between bond prices and interest rates, the concept of duration, and strategies to mitigate risk in bond portfolios.
Explore the concepts of Macaulay and Modified Duration, their calculations, applications, and limitations in bond investment.
Explore the concept of convexity in bond pricing, its importance, calculation, and role in bond portfolio management. Learn how convexity enhances duration-based estimates and provides better price sensitivity analysis.
Explore the concepts of duration and convexity in bonds, crucial for assessing interest rate risk and managing bond portfolios effectively.
