Sentences with phrase «individual bond durations»

Effective Duration - This statistic provides a measure of the sensitivity of the Fund's price to changes in interest rate changes and is calculated as the weighted average of the individual bond durations.

Not exact matches

It's a bit involved: you have to take the present value of each of the bond's cash flows, divide each by the total present value of all the cash flows, and then add up all of these individual durations to get the total duration of the bond.

You're still dealing with all of the same bond risks as every other investor when you buy individual bonds — interest rate risk, credit risk, inflation risk, duration risk, default risk, etc..

A bond allocation comprised primarily of individual bonds provides much more flexibility as it relates to duration management and tax efficiency.

As I have covered previously, when you own an individual bond, you invest for a set period of time and get paid interest for the duration or maturity length of the bond.

With respect to individual bonds, for example, a duration of 4 years indicates that the price of a bond will rise / fall by approximately 4 % if rates in general fall / rise by 1 %.

For individual investors, duration is primarily used as a measure of a bond fund's sensitivity to prevailing interest rates.

With those options eliminated, you have a few choices left: buying individual bonds or certificates of deposit (CDs) with durations of less than three years, putting your money in a money market fund, or using a savings account.

For an individual bond or bond fund, this risk is captured by a measure known as duration.

If you are looking to add bond exposure to your portfolio, there are a few questions you have to answer first: what kind of bonds are you looking to add, what duration are you targeting, and will you be purchasing individual bonds or a bundle of bonds through bond mutual fund or ETFs?

In the construction of the S&P U.S. High Yield Low Volatility Corporate Bond Index, an individual bond's credit risk in a portfolio context is measured by its marginal contribution to risk (MCR), calculated as the product of its spread duration and the difference between the bond's option adjusted spread (OAS) and the spread - duration - adjusted portfolio average OAS (see EquationBond Index, an individual bond's credit risk in a portfolio context is measured by its marginal contribution to risk (MCR), calculated as the product of its spread duration and the difference between the bond's option adjusted spread (OAS) and the spread - duration - adjusted portfolio average OAS (see Equationbond's credit risk in a portfolio context is measured by its marginal contribution to risk (MCR), calculated as the product of its spread duration and the difference between the bond's option adjusted spread (OAS) and the spread - duration - adjusted portfolio average OAS (see Equationbond's option adjusted spread (OAS) and the spread - duration - adjusted portfolio average OAS (see Equation 1).

As part of your instructor training you'll get a chance to interact with the course participants, like - minded individuals who you are sure to bond with over the duration of the course.

The Peace Bond has a 12 month duration and can be customized to address issues specific to the individual but will most commonly prohibit contact with the complainant (except again with his / her prior written revocable consent) and will prohibit the accused from being in possession of any weapons.