Fisher-Weil duration and Seasoned bond: Difference between pages

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imported>Doug Williamson
(Layout.)
 
imported>Doug Williamson
(Correct typo 'bond'.)
 
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''Risk management''.
''Securities - secondary market.''


Duration calculates the weighted average timing of the cashflows of an instrument, weighted by the present values of the cashflows.  
A seasoned bond is one trading in the secondary market that has been in issue long enough to have a stable market price.




Two forms of the duration measure are Macaulay's duration (which is simpler) and Fisher-Weil duration (which is more refined).
== See also ==
 
* [[Bond]]
Macaulay’s duration assumes a flat yield curve - in other words the same yield (to maturity) for all maturities of cashflow.
* [[Greenium]]
 
* [[Issue]]
Fisher-Weil duration is a refinement of Macaulay’s duration which takes into account the term structure of interest rates.
* [[Issuer]]
 
* [[New issue concession]]
 
* [[New issue premium]]
Fisher-Weil duration calculates accordingly the present values of the relevant cashflows (more strictly) by using the zero coupon yield for each respective maturity.
* [[Primary market]]
 
* [[Seasoned issuer]]
This refinement is particularly important when the cash flows are longer term and when yields vary significantly for different maturities.
* [[Seasoned security]]
 
* [[Secondary curve]]
* [[Secondary market]]
* [[Security]]


== See also ==
[[Category:The_business_context]]
* [[CertFMM]]
[[Category:Corporate_finance]]
* [[Duration]]
[[Category:Investment]]
* [[Macaulay duration]]
[[Category:Long_term_funding]]
* [[Yield curve]]
[[Category:Ethics]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Latest revision as of 11:10, 11 January 2023

Securities - secondary market.

A seasoned bond is one trading in the secondary market that has been in issue long enough to have a stable market price.


See also

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