The
Duration Model is based on market value and helps to manage interest rate risk.
The market value approach helps to identify the true value of assets and
liabilities. For example, if a bond was purchased at a 4% R sometime back, and
if the R has fallen to 3% at present, the bond must be stated at the new price
which is higher.
Showing posts with label true value of assets and liabilities. Show all posts
Showing posts with label true value of assets and liabilities. Show all posts
Tuesday, September 9, 2014
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