Talk About: -"Black Hole of Calcutta

question 6

Essay

Talk about:
-"Black Hole of Calcutta"

Understand the concept of bond duration and its calculation.

Calculate the change in bond prices given duration and a change in yield.

Distinguish between Macaulay duration and modified duration.

Understand and apply the concept of convexity in bond pricing.

---

Definitions:

Common Shares Outstanding

The total number of shares of a corporation's stock that are currently owned by investors, including those held by institutional investors and company officers.

Net Income

The total earnings of a company after deducting all expenses, including taxes and operating costs, from its total revenue.

Weighted-Average

A calculation that takes into consideration the varying degrees of importance of the numbers in a data set.

Cash Dividends

Cash Dividends are payments made by a corporation to its shareholder members. It is a share of profits and retained earnings that the company pays out to its shareholders.