Home >                  	Term: effective duration  
effective duration
The duration calculated using the approximate duration formula for a bond with an embedded option, reflecting the expected change in the cash flow caused by the option. Measures the responsiveness of a bond's price-taking into account that expected cash flows will change as interest rates change due to the embedded option.
- Jenis Kata: noun
 - Industri / Domain: Layanan keuangan
 - Kategori: Keuangan secara umum
 - Company: Bloomberg
 
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