Question
The _____ measures the price volatility of fixed income
securities.Solution
Duration (Macaulay duration) measures the price volatility of fixed income securities. It is often used in the comparison of the interest rate risk between securities with different coupons and different maturities. It is the weighted average of the present value of all the cash flows associated with a fixed income security. It is expressed in years. The duration of a fixed income security is always shorter than its term to maturity, except in the case of zero coupon securities where they are the same
Ms. Neha and Ms. Tara launched a startup with a total investment of Rs. ‘x’. Neha's share in the initial investment was 45%, and Tara invested the r...
- Person 'A' invests Rs. 'y' in a business, while person 'B' contributes Rs. (y + 400). After a duration of 2 years, A's profit is 1/6 less than B's profit. ...
‘A’ started a business by investing Rs. 2000. Three months later, ‘B’ joined by investing Rs. ‘x’. If at the end of the year ‘B’ receive...
A man invested a certain amount in two schemes, A and B, in the ratio 3:2. Scheme A offers 12% annual simple interest, and Scheme B offers 10% annual si...
Ashish started a business by investing Rs. 1400. Few months later; Ramesh joined him by investing Rs. 1600 such that at the end of the year, the profit ...
P and Q started a business by investing Rs.8000 and Rs.6400 respectively. After 6 months, Q increased his investment by a certain percentage such that a...
Nihit starts a business with Rs.700. After 5 months Amit and Patel joined him with Rs 300 and Rs400 respectively. At the end of the year, the business g...
- Amit and Sumit jointly invested Rs. 4200 and Rs. 2800 in a startup. If the total annual profit is Rs. 9800, what is the difference between their shares of ...
M and N invested Rs. 6400 and Rs. 5000, respectively, when they first started their businesses. After a year, N increased his investment by 40% while M ...
X, Y and Z started a business with initial investments of Rs. 5,000, Rs. 7,000 and Rs. 13,000 respectively. After one year, they made additional investm...
