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According to Jones and Davis, attributions usually are formed by observing:
Modified Duration
A measure of a bond's price sensitivity to changes in interest rates, taking into account the bond's yield, coupon, and time to maturity.
Hedge Ratio
A ratio used to measure the amount of exposure reduced by hedging, typically in the context of derivatives and risk management.
T-bond Futures
Futures contracts that are agreements to buy or sell U.S. Treasury bonds at a predetermined price on a specified date in the future.
Incentive Bonus
A form of additional compensation used to motivate and reward employees beyond their regular pay for achieving specified performance targets.
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