FIN 364 Week 4 Discussion 1 | Devry University
- Devry University / FIN 364
- 25 Aug 2021
- Price: $5
- Accounting & Economics Assignment Help / Finance
FIN 364 Week 4 Discussion | Devry University
Week
4: Bonds and Bond Duration
Suppose you have a goal of starting a new
business 3 years from now and must accumulate enough funds for this
project. You decide to invest in bonds but you are concerned about
interest rate risk. How can duration be used to estimate and manage interest
rate risk? How can the duration of a bond portfolio be adjusted? Why might an
institution or investor want to do this?