30 years: Risk management & derivatives trading
In this video, Lindsey covers the investment strategies in bonds and shows the risks and potential returns on these investments.
In this video, Lindsey covers the investment strategies in bonds and shows the risks and potential returns on these investments.
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10 mins 11 secs
When interest rates rise, fixed-rate bond prices move lower and vice versa. The longer the rate on an investment is fixed, the more its price moves with changes in interest rates. For bonds, how much a price changes is driven by how long the investment is fixed for.
Key learning objectives:
Define bond’s duration
Learn the calculation of the price difference of a bond given a 1bp change in yield
Define PVBP
This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.
This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.
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