Nicely explained👌, my doubt is how to immunize with multiple bonds
@katakokeny3663 жыл бұрын
Great video! Thank you!
@lockelancer8193 Жыл бұрын
The PV of the debt obligation is not the sum of the individual discounts, rather it its the obligation discounted by 2 periods. This is logical and straightforward based on the fact that discounting operates on the notion that money today is worth more than money tomorrow - both due to inflation and to the opportunity cost of a "risk free" investment. It makes no sense to say that the debt obligation is worth 1.7x more today than in 2 years when the rate is a 8%.
@joonwonlee15674 жыл бұрын
Good
@ExcelTutorials15 жыл бұрын
thanks for the amazing video!!!!!!
@ashwinikokil3853 жыл бұрын
Hello, how did you calculate the change in net position please?
@stranglesensei4 жыл бұрын
very helpful!
@reetajain42642 жыл бұрын
Hello can you explain...? How the tuition fees is paid gradually?
@chidieze55863 жыл бұрын
I think you got the PV calculation wrong. Since the turion expenses would be made in two years time, it implies that the value you derived should be at time one, you would need to discount one more time to get the PV at time zero