Question: What are the different approaches used to estimate the duration
What are the different approaches used to estimate the duration of high-yield corporate bonds?
Answer to relevant Questions(a) What is meant by the empirical duration of a corporate bond? (b) How is the empirical duration of a corporate bond estimated? Answer the below questions. (a) What is the purpose of a leverage ratio? (b) What measures are used in a leverage ratio for total capitalization? (c) What is the margin of safety measure? Some credit analysts place less emphasis on collateral compared to covenants and business risk. Explain why. How does the Jarrow-Turnbull-Lando model differ from the basic Jarrow-Turnbull model? What is a common feature of all structural models?
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