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 > 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

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

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

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

Price and yield are inversely proportional.
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

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

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

View 7 more Answers

Related Questions

What is the function of the Central Processing Unit of a Computer? 1) Creates invoices 2) Performs calculations and processing 3) Deletes Data 4) Corrupts the data
Performs calculations and processing.
Sugantha
What is the meaning of present tense? How can one remember that?
Present tense is defined as act or something going or happens in current time.
Pinky
Why is venus the hottest planet even though mercury is closer?
The degree of hotness of a planet does not depend on as much on closeness to the sun as on its atmosphere.Carbon dioxide has the tendency to absorb heat which in turn increases the temperature. Mercury's...
Amitabh
What are inscriptions? How do they help us know about ancient India?
Inscriptions are the writings that are engraved on stones or are etched on metals in ancient times. They're mostly found in the southern parts of India and were found to engrave on copper plates, on the...
Ankita
which planet is the neighbour of Soler system?
The closest known planet to Earth outside of the Solar System circles Alpha Centauri B. Although its about the size of Earth, it's closer to the Sun than Mercury, making it uninhabitable.
Jeewan

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

Ask a Question

Related Lessons

How To Factorise Polynomial?
Factorising: 1. Factorising - Expanding Bracket: This section shows you how to factorise and includes examples. Brackets should be expanded in the following ways:a. For an expression of...

Padmini R.

1 0
0
Effective study habits
Effective study Habits, we are creature of our habits. Substitute bad habits of learning with good habits of learning. Right attitude. Approach the material you are studying with right attitude. Get...

Sunil Sikri

2 0
2
Difference Between Ice and Water
Water: Water, commonly known by its chemical properties as H2O, is one of the most prevalent elements on the Earth, with up to 75% of the Earth’s surface being covered with it. It is among the most...

Debraj Paul

0 0
0
learning is fun ,,,teaching is just showing a student how to enjoy it .
teaching-finding effective ways to make learning fun for the child
G

G.haritha

0 0
0
Optical Image
If a beam of light emitted by an illuminated object suffers a change in the direction due to reflection or refraction, the reflected or refracted rays of light converge or appear to diverge from another...

Debraj Paul

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 Hyderabad
Class 8 Tuition in Kolkata
Class 8 Tuition in Chennai
Class 8 Tuition in Mumbai
Class 8 Tuition in Pune
Class 8 Tuition in Gurgaon
Class 8 Tuition in Noida
Class 8 Tuition in Lucknow
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 © 2010-2025 All Rights Reserved