ajpheif16

Duration = Interest Rate Sensitivity

Lower Rating / Coupon = Higher Interest Rate (low duration)

Longer Maturity - will increase duration ; Higher YTM - will decrease duration

Higher Liquidity / Rating = Low Interest Rate (Thus more "sensitive" to changes & high duration)

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smileyface is gonna clear the CFA L2 Exam on 5th June, 2011. And making this statement won't be a violation of Code of Ethics since its a fact. ;-)



Edited 1 time(s). Last edit at Wednesday, June 2, 2010 at 09:56AM by smileyface.