thx!
Reading notes from here http://finance.thinkanddone.com/
There are two types of durations
1) Macaulay's duration
2) Modified duration
Modified duration is found as ratio of 1st derivative of bond price over the bond price
Calculating the duration(s) is time consuming when done manually, it is much easier to find the duration given par value, coupon, rate, ytm, and years to maturity by plugging in these values in two one of the following two online calculators
http://finance.thinkanddone.com/online-b...
http://finance.thinkanddone.com/online-b...
The first one will return the duration, the second one will show you how the duration is calculated showing each step
Macaulay's duration amends the modified duration by an extra interest factor of (1+i) where i is the YTM
i need the formula to calculate a t-note that has coupon rate, par value, and ytm
thx!
