Bond and Stock Valuation Concepts
Free CFP Exam lesson in Investment Planning. 18 min read, ~2,691 words.
Bond prices and interest rates always move inversely; this is mathematical, not opinion. Macaulay duration is the PV-weighted average time to a bond's cash flows:, with. Modified duration = Macaulay / (1 + y/k), where is the annual YTM and the coupon periods per year; with annual coupons this is...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- D.32
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