UrbanPro
Login Ask & Answer Success Stories Paid Courses Free Classes Tuition & Classes Fees Write a Review All Categories Help Center
Post your Learning Need Signup as a Tutor
✕

Popular Cities

Bangalore

Hyderabad

Delhi

Mumbai

Chennai

Pune

Kolkata

Gurgaon

Ahmedabad

Jaipur

Noida

✕

Take Class 8 Tuition from the Best Tutors

  • Affordable fees
  • 1-1 or Group class
  • Flexible Timings
  • Verified Tutors

Book a Free Demo

Class 8 Tuition > Learn Class VI-VIII Tuition > What is the relationship between yield, price and...
✕

Search in

What is the relationship between yield, price and modified duration of a coupon bond?

Asked by Last Modified  

9 Answers

Learn Class VI-VIII Tuition

Follow 0
Answer

Please enter your answer

Learn Biology from an Expert

Two basic yield measures for a bond are its coupon rate and its current yield. Par value Annual coupon Coupon rate = Bond price Annual coupon Current yield
Comments
Dislike Bookmark

1)Bond prices and bond yields move in opposite directions. -- As a bond’s yield increases, its price decreases. -- Conversely, as a bond’s yield decreases, its price increases. 2)For a given change in a bond’s YTM (Yield to maturity), the longer the term to maturity of the bond, the greater the...
read more
1)Bond prices and bond yields move in opposite directions. – As a bond’s yield increases, its price decreases. – Conversely, as a bond’s yield decreases, its price increases. 2)For a given change in a bond’s YTM (Yield to maturity), the longer the term to maturity of the bond, the greater the magnitude of the change in the bond’s price. Modified duration is the approximate percentage change in a bond's price for a 100 basis points change in yield, assuming that the bond's expected cash flow does not change when the yield changes. read less
Comments
Dislike Bookmark

Business Analyst in Investment banking with 9 years of solid global industry experience

They are intrlinked to earning coupon for the period
Comments
Dislike Bookmark

maths,science..

They are inversly proprtinal to each other
Comments
Dislike Bookmark

TEACHING MATHS

When price goes up, yield goes down and vice versa. Technically, you'd say the bond's price and its yield are inversely related.
Comments
Dislike Bookmark

Computer Wizard

* The bond is called by the issuer at the first possible date is called yield to call (YTC) * A call usually occurs after a fall in market interest rates that allows issuers to refinance outstanding debt with new bonds. Bond prices move inversely with interest rates. * For a given absolute change...
read more
* The bond is called by the issuer at the first possible date is called yield to call (YTC) * A call usually occurs after a fall in market interest rates that allows issuers to refinance outstanding debt with new bonds. Bond prices move inversely with interest rates. * For a given absolute change in a bond’s yield to maturity, the magnitude of the price increase caused by a decrease in yield. Decreasing yields cause bond prices to rise, but long-term bonds increase more than short-term. Similarly, increasing yields cause long-term bonds to decrease in price more than short-term bonds. We know that Modified duration = - (1/p) * [( Dp)/(Dy )] where p is the bond price, Dp is the change in bond price and Dy is the change in the required rate of return (yield to maturity). From the above formula, we can see that Dp/ Dy is the first derivative of the bond price with respect to yield to maturity. read less
Comments
Dislike Bookmark

Tuitions upto Grade 10, Web/App Development Training, Spoken English

Price and yield are inversely proportional.
Comments
Dislike Bookmark

When price goes up, yield goes down and vice versa. Technically, you'd say the bond's price and its yield are inversely related.
Comments
Dislike Bookmark

Modified duration is a modified version of the Macaulay model that accounts for changing interest rates.
Comments
Dislike Bookmark

View 7 more Answers

Related Questions

How can I teach French through UrbanPro?
Teach through online videos. Create your profile and upload videos.
Manisha
In BODMAS formula, do we proceed from left to right or as per the order of letters in the word bodmas. I mean, if multiplication and division both are there in an expression and multiplication is in the left of division then which operation will be taken first, multiplication or division. According to one rule we proceed from left to right, in this case multiplication first and if we proceed according to other rule which says that we have to go as per order of letters then division first. I am confused... !!! Plz help. Thanx
BODMAS stands for Brackets, Order, Divide, Multiply, Add, Subtract and reminds you in what sequence to carry out the operations of arithmetic. As you can see there are three levels to consider. Any bracketed...
Baljeet Singh
What is the technique used to develop new varieties of crops having desirable traits?
Cross hybridisation
Rahul
0 0
7
World Environment Day is celebrated on.....? 1) July 1 2) June 6 3) January 5 4) June 5
June 5
Sugantha
What is measure for calculation of time devoted for answering to student queries; if one say less and actually devoted more.
It'll definitely gonna depends upon satisfaction of the students and I don't think time matters that much as long as you are able clearthe doubts of the students.
Pradeep M.
0 2
7

Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com

Ask a Question

Related Lessons

verb formation cording
ऌट् लकार (सामान्य भविष्यत्, Second Future Tense) पुरुष एकवचन द्विवचन वहुवचन प्रथमपुरुष स्य+ति स्य+तः ...

Arun

0 0
0
How to learn faster ?
When you're young, learning is easy. You're open to new ideas, and get excited about challenging yourself. You also have more time, and everyone around you is encouraging you to take on new skills. But...

Bhavesh Singh

0 0
0
Framing questions and learn
While learning any subject, specifically within CBSE syllabi, any grade, I find it very useful for the students to frame objective questions related to specific topics within a subject area.

Parvathy R.

0 0
0
Uses of Fullerences
It is hoped fullerences or their compounds may find used as - (A) superconductors (B) semiconductors (C) lubricants (D) catalysts (E) as highly tensile fibers for construction industry. (F) inhibiting agents in the activity of the AIDS virus.

Debraj Paul

0 0
0
Pythagorean Theorem
Pythagorean Theorem - If a and b are the lengths of the legs of a right triangle and c is the length of the hypotenuse, then the sum of the squares of the lengths of the legs is equal to the square of...

Mohammad Ismail Ansari

0 0
0

Recommended Articles

The Trend of E-learning and it’s Benefits

E-learning is not just about delivering lessons online. It has a much broader scope that goes beyond manual paper or PowerPoint Presentations. To understand the reach of E-learning and how the whole process works in developing the Educational system, we will discuss a few points here. Let us find out how this new learning...

Read full article >

5 Engaging Activities For Children To Get...

Learning for every child starts from a very young age. While the formal methods include school curriculums and private lessons, the informal methods include dancing, music, drawing, and various fun-filling activities. Playing games and practising these types of activities helps the children get out of boredom and...

Read full article >

The Rising Problems in Indian Government School

With the mushrooming of international and private schools, it may seem that the education system of India is healthy. In reality, only 29% of children are sent to the private schools, while the remaining head for government or state funded education. So, to check the reality of Indian education system it is better to look...

Read full article >

6 Exam Hall Tips To Follow, For Every Good Student

Appearing for exams could be stressful for students. Even though they might have prepared well, they could suffer from anxiety, tension etc. These are not good for their health and mind. However, following a few exam preparation tips can save them from all these and help them to score good marks. Let’s find out all...

Read full article >

Find Class 8 Tuition near you
Class 8 Tuition in Delhi
Class 8 Tuition in Bangalore
Class 8 Tuition in Kolkata
Class 8 Tuition in Hyderabad
Class 8 Tuition in Mumbai
Class 8 Tuition in Chennai
Class 8 Tuition in Pune
Class 8 Tuition in Noida
Class 8 Tuition in Ghaziabad
Class 8 Tuition in Gurgaon
Online Tuition Class 8

Looking for Class 8 Tuition ?

Learn from the Best Tutors on UrbanPro

Are you a Tutor or Training Institute?

Join UrbanPro Today to find students near you
X

Looking for Class 8 Tuition Classes?

The best tutors for Class 8 Tuition Classes are on UrbanPro

  • Select the best Tutor
  • Book & Attend a Free Demo
  • Pay and start Learning

Take Class 8 Tuition with the Best Tutors

The best Tutors for Class 8 Tuition Classes are on UrbanPro

This website uses cookies

We use cookies to improve user experience. Choose what cookies you allow us to use. You can read more about our Cookie Policy in our Privacy Policy

Accept All
Decline All

UrbanPro.com is India's largest network of most trusted tutors and institutes. Over 55 lakh students rely on UrbanPro.com, to fulfill their learning requirements across 1,000+ categories. Using UrbanPro.com, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 7.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on UrbanPro.com. Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more

ThinkVidya Learning Pvt Ltd © 2010-2024All Rights Reserved