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Dietary Fiber

question 14

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Dietary fiber

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:

S&P 500 Future

A futures contract that bets on the future value of the S&P 500 index, a major American stock market index.

Mispricing

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A form of business partnership where some or all partners have limited liability, protecting them from some or all of the partnership's debts and liabilities.

Lock-Up Period

A specified period post-IPO during which shareholders are restricted from selling their shares.

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