Bonds A Step by Step Analysis with Excel (Chapters One, Two, Three, Four, Five and Six Book 1)
| Author | : | |
| Rating | : | 4.59 (895 Votes) |
| Asin | : | B00ER271A4 |
| Format Type | : | |
| Number of Pages | : | 530 Pages |
| Publish Date | : | 2014-09-30 |
| Language | : | English |
DESCRIPTION:
After reading this chapter you will be capable of: •Understanding that the IRR is not always a good measure of the annual return.•Identifying situations in which the yield requires an additional interpretation.•Calculating a portfolio return, when there are deposits and withdrawals in a brokerage account.Chapter Four describes the measure to calculate a portfolio return. Although the calculations to obtain the theoretical spot rate can be tedious and cumbersome, we describe a technique that uses matrixes which is simpler and faster. The examples discusses some important issues such as the need to equalize the amount of the investment, the calculation of the total return for a certain investment horizon and the portfolio’s return calculation with external cash flows. After reading this chapter you will be capable of: •Understanding the price-yield relationship of an option-free bond.•Calculating the duration, modified duration and convexity for real bonds using Excel spreadsheets.•Understanding why duration is a measure of a bond´s price sensitivity to yield changes.•Understanding the limitations of the duration as a measure of price volatility and how the duration estimation can be adjusted for a bond´s convexity.Chapter Three desc
Joe Wanamaker said good book with 1 mistake. This was a really good book for its topic. It is very hard to find Excel examples like this in any textbook. I like the real life commentary as well.However he calculated yield to maturity incorrectly. He used a short cut with the IRR function which works for almost no bond.. fasdo said Five Stars. The best I have seen for bond math. "Excellent primer" according to Kennard P. Balme. Readable, a bit difficult in parts but the spreadsheets really help with your analysis. A valuable asset for your library