What is duration and how can it be used to hedge against interest rate changes? Use an

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What is duration and how can it be used to hedge against interest rate changes? Use an example to illustrate your answer.

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Corporate Finance

ISBN: 9780077173630

3rd Edition

Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe

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Question Posted: Feb 22, 2024 03:02 AM

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What is duration and how can it be used to hedge against interest rate changes? Use an

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Duration is a measure of the sensitivity of the price of a fixedincome security to changes in interest rates It represents the weighted average time i...View the full answer

Corporate Finance

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