HOLLOW POINT TRADING MARKET BRIEF
What this market video covers
Macaulay duration is not simply the average of the payment dates. Consider a hypothetical two year bond with one hundred dollars of principal, ten dollar annual coupons, and a ten percent annual discount yield. Assume valuation immediately after a coupon, scheduled payments, no default and no embedded option. At year one, the ten dollar coupon has…
Use this analysis as general education. Confirm current prices and conditions independently, define invalidation before entry, and size every position for the loss you can actually tolerate.