The easiest duration to calculate is that of a zero-coupon bond. This bond has zero yield, which means it does not pay any interest. Its duration is equal to its time to maturity. When a coupon is ...

Estimating doubling time with the Rule of 72 is simple. You can use the formula below to calculate the doubling time in days, months, or years, depending on how the interest rate is expressed.

The formula follows the standard duration calculation ... managers adjust interest rate exposure accordingly. Effective duration estimates a bond's overall price sensitivity to interest rate ...

For example, the formula for calculating speed is speed = distance ÷ time. It is possible to calculate the speed, distance or time if you have the other two values. The formula for speed is speed ...

Modified duration is a formula that measures the sensitivity ... Let’s also assume that the current interest rate is 7%. To calculate the modified duration for this bond, we first need to ...