The sensitivity of bond prices to changes in interest rates.
Related information about bond price elasticity:
- What is bond price elasticity? definition and meaning
Definition of bond price elasticity: The sensitivity of bond prices to changes in interest rates.
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However, sometimes, what we are really interested in is the bond price elasticity with respect to the yield. This elasticity is called the Macaulay Duration.
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2Actually, duration measures the negative of the percentage change in bond price. Duration is a measure of the bond price's elasticity with respect to the interest ...
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Mar 31, 2011 ... Bond Price Elasticity. Explain the concept of bond price elasticity. Would bond price elasticity suggest a higher price sensitivity for zero-coupon ...
- Ch8 Bond Valuation - UNO CBA
which investment should you select? PRICE SENSITIVITY. 21. BOND PRICE ELASTICITY. ◇ Bond Price Sensitivity For Any %. Change In Market Interest Rates ...
- FMCh26.ppt - Class Index - University of Lethbridge
Weighted average of the bond's payments maturities; Bond's price elasticity with respect to its discount rate. Discount factor elasticity. Price volatility. Bond Price ...
- (1+ i) 1 +
Bond Price Elasticity = Bond price sensitivity for any % change in market interest rates; Bond Price Elasticity = (% Change In Price)/(% Change In Interest Rates) ...
- Bond-Valuation
Nov 28, 2009 ... The program returns (red cells in the output area) percentage changes in P and k and bond price elasticity. The program also returns (blue cells ...