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on 23-Apr-2015 (Thu)

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Flashcard 150889554

Tags
#bonds #duration #finance
Question
[...] duration calculates the present values of the relevant cashflows (more strictly) by using the zero coupon yield for each respective maturity.
Answer
Fisher-Weil

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Fisher-Weil duration calculates the present values of the relevant cashflows (more strictly) by using the zero coupon yield for each respective maturity.

Original toplevel document

Bond duration - Wikipedia, the free encyclopedia
ly 7% in value if the interest rate increased by one percentage point (say from 7% to 8%).[6] Fisher-Weil Duration[edit] Fisher-Weil duration is a refinement of Macaulay’s duration which takes into account the term structure of interest rates.<span>Fisher-Weil duration calculates the present values of the relevant cashflows (more strictly) by using the zero coupon yield for each respective maturity.[7] Key Rate Duration[edit] Key rate durations (also called partial DV01s or partial durations) are a natural extension of the total modified duration to measuring sensitivity to shifts