What is vector analysis?
Answer to relevant QuestionsIn the calculation of effective duration and effective convexity, why is a prepayment model needed? Give two reasons why a CMO tranche is a path-dependent cash flow security. What is the difference between a busted convertible and a distressed convertible? A Merrill Lynch note structure called a liquid yield option note (LYON) is a zero-coupon instrument that is convertible into the common stock of the issuer. The conversion ratio is fixed for the entire life of the note. If ...When all cash flows are assumed to be discounted by a single yield, why is there no difference between the duration (sensitivity to yield), interest-rate duration (sensitivity to rates), and spread duration (sensitivity to ...
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