why is bond duration calculated?
436031
Bond duration is the easiest measure of interest rate sensitivity of a bond.  For instance, if a bond has a duration measure of 4, it means that for every 1 percentage change in the market interest rates, the bond value changes by 4%. \n\nThe duration measure is an approximation since it is trying to measure movement along the slope of a curve with a straight line equation. (If you know calculus, duration is the first derivative of the interest-price relationship).  In bond valuation, an additional measure called convexity is used to correct this difference (which again is an approximation - a second derivative)
32005
Go to www.savingsbonds.com.  Scroll down to the "Quick Links to" section for details on EE bonds.  You might have to dig around for the E type bond information.
523415
http://www.bondsonlinequotes.com/index.cfm?CFID=16970449&CFTOKEN=12afc9b-ce49873d-62e5-41c4-a8db-c5ed72b4a415\n\nSign up and use
720873
What type of bond? And risk to whom?
246852
It doesn't matter on a free to purchase investment such as a bond bond, but it can matter on stocks.\nIf you put down $100 once a week to purchase stock at a $15 buy fee, that a loss of 15% purchase power each week.  If you put in $1,000 every 10 weeks, you loose 1.5% purchase power, but the volitility on stocks can move that much in one or two days.  You might miss on the run up if you wait, but you take a big loss if your buy fee eats up a good percentage of what you want to put in.
139198
It depends on the government bond. If it series EE you need to wait 6 months before you can cash it in at purchase value.\nExample a $50 bond you get $25 after 6 months.\nMost bonds mature in 10 years. I hope that answers your question.
572609
The difference comes from different measures of earnings (the 'E' in EPS).  Some use the last calendar year, some use the last 4 quarters, some use earnings estimates for the coming year or 4 quarters.\n\nYou can calculate your own using the information available at Yahoo and earnings.com or use that info. to figure out the assumptions for the sites you list above.  Then you can use whichever one uses assumptions that make the most sense to you.\n\nAs long as you're consistent it will be a meaningful measure.  I like the past 4 quarters method.
697038
This is kinda hard to draw on here...\n......_\nK--Br|\n......_\n\nThe lines around Br represent 2 electrons, and the -- represents a bond...ignore the periods
1168169
Goose is right. The formula is:\n\nFV = P x e^(r x y) \n\nwhere FV = Future Value; P is your principal, r is the annual interest rate and y is the number of years of continuous compounding and e = lim(n-->inf) of (1+1/n)^n\n= 2.7182818.(about)\nHere's link which explains it quite well and also has a periodic/continuous calculator to fool around with.\n\nhttp://www.moneychimp.com/articles/finworks/continuous_compounding.htm
932328
Par is the face amount of the bond (or the principal that will be paid at maturity).  Stated or statement value or book value is what the asset is held at on the books for accounting purposes.  Typically, bonds will be "held to maturity," so any discount or premium that they were bought at (vs. par) will be amortized.  \n\nFor example, a bond with par of $1000 is bought for $1300 (because interest rates went down or the credit risk of the issuer went down).  The bond is held on the books at $1300.  Over time, the premium of $300 ($1300-$1000) is amortized, so that at maturity the stated value of the bond is $1000, or par.
1095361
First, I should not that the "yield" I have been reporting is the interest earned.  Add $10,000 for the total amount in the account at the end of the investment period.\n\nSecond, you wrote the formula incorrectly.  The formula for continuous compounding has to include the interest rate, so\nA = Pe^(rt)\n\nGiven the information from the previous question ($10,000 at 10% for 2 years), continuous compounding would yield $2,214.03.\n\nIf we know that the bank returned $15,000 on a $10,000 deposit at 10%, the length of time must have been 4.05 years.\n\nIn 6.93 years, a deposit will have doubled.\n\nI apologize for the delay on responding to these questions--I have been on vacation.
1158734
Say the bond is a 10 yr bond issued on on 12-31-03 for 9,700 and the face value is 10,000.  You would amortized the discount over over ten years.  (10,000-9,700)/10 yrs = 30 amortization of 2004.
11219
To calculate compounded interest:\nBalance=Principal*(1+rate/compounds per year)^(number of years*compounds per year)\n\n$6000*(1+.06/2)^(3*2) is about $7164.31.
571254
Hmmm. Sasha is right...and Richard is probably a taxable guy.\nMunis trading at "par and 3/4" are trading at 100.75, ie, Sasha is right.\n\nMunis don't trade in 32nds, govies do. Even corps trade in decimals and 1/8ths.\n\nIn answer to the question, trading at par and 3/4 means 100.75. So, if you are buying 100 bonds, you would be paying a net of $100,750.00 plus accrued interest.
538176
The answer is D = 12%.\n\nThe way to do the math is with the following assumptions:\n\nPresent value = 404 (given)\nFuture value = 1,000 (par)\nPayment = 0 (zero coupon bond)\nNumber of time periods = 8 (given)\n\nSolve for the interest rate.\n\nThe way to check your answer is simply to use the equation:\n404 * (1.12) ^ 8 = $1000 so we know that 12% is correct!
604613
You will use the formula\nA = Pe^(rt)\nA = 25,000\nsince the question is asking for how long, this means you are looking for t.\nYou need to know the interest rate (r) and the principal (P).
562948
Remember that bonds have a fixed dollar rate of payment. So, if the interest goes up, the price of the bond has to go down for that payment to correspond to the interest rate at that price. Similarly, if the interest rate goes down, the price of the bond goes up.