Added: 4 years ago
From: bionicturtledotcom
Views: 37,235
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  • Thanks for this video.

  • What actualy is your "Actual" value?

    The video shows formula:

    =face*EXP(-(C5+1)*T)-face*EXP(­-C5*T)

    Which I understand as: (Price for 104% yield) - (Price for 4% yield), not as the price percentage change.

    Also "Modified Duration" = "Macaulay Duration" / (1 + yield)

    which should give positive 28.85. Why do you need this to be negative?

  • do you have a book on higher level bond analycitcs?

  • Good video David. Is Cab an ex-g/f perhaps?

  • @ivqancorp thanks, appreciated. Cab seems way more pleasant than my ex-g/f ;)

  • @Cab828 compound frequency is beside the point. Convexity is a simpler calculation under continuous. As modified and Mac convexity converge under continuous, for illustration purposes you get a convexity that is invariant to yield. But thanks for your, er, help and constructive tone

  • @Cab828 I am laughing at your dumbass comment now. You must be new to this shit hahaha!

  • @kaqhan2 Did you just get released from a mental institution?

  • David, how can I calculate the data in the duration plot highlighted in green. Thanks

  • Hi David, in your opinion what are some of the options in pricing an illquid bond? Say i had to mark mtm. Can we take the spread on the cds? It was suggested that we look at a treasury bond and then take a spread...but how would we know what spread to take? Thx

  • Very nice informative video. Where i could get/learn more about how to build financial models in excel. The formulas, graphs, ect... thx

  • Winston - Financial Models Using Simulation & Optimization (I & II)

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