Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
20Activity
0 of .
Results for:
No results containing your search query
P. 1
Bond Portfolio Management Active & Passive Strategies

Bond Portfolio Management Active & Passive Strategies

Ratings: (0)|Views: 492|Likes:
Published by Aditya

More info:

Published by: Aditya on May 26, 2010
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PPT, PDF, TXT or read online from Scribd
See more
See less

01/06/2013

pdf

text

original

 
BOND PORTFOLIOMANAGEMENT – THEACTIVE & PASSIVESTRATEGY
 
INTEREST RATE RISK
Bond price & yields are inter related.As interest rate fluctuate bondholdersexperience capital losses and gains.Why?The reason is that in a competitivemarket securities are priced to offer fair expected rates of return.
 
E.g. If a bond is issued with a 10%coupon when the competitive yield is10%, then it will sell at par. If the marketrate rises to 11% the bond price mustfall so that its yield rises to 11%;conversely if the market rate falls to 9%its price must rise.

Activity (20)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
Himanshu Arora added this note
first off all thanx this is very helpfull for me.....but i am not properly able to understand what is exploiting mispricing among securities..? will u plz define it again in a simple manner...:)))
Prasanna Kumar liked this
Mehak Bhargava liked this
Mani Kant liked this
Richa Gupta liked this
Shaheen Bhabha liked this
chinai123 liked this
Priyanka Gupta liked this

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->