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Introduction to Modified Duration Modified duration is an essential tool in the world of fixed income securities and plays a pivotal role for institutional investors when assessing the interest rate risk associated with their bond portfolios. Modified duration, an extension of Macaulay duration, measures how the price of a bond
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Introduction to Laddering Laddering, in the context of fixed income investing, is a strategic approach that aims to create a steady cash flow and manage certain risks by combining investments with specific maturities. The concept’s primary objective is to maintain a desired level of liquidity while preserving capital and maximizing
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What are Held-to-Maturity (HTM) Securities? Held-to-Maturity (HTM) securities refer to investments made with the intention of holding them until they reach maturity or their final payment date. This investment strategy is commonly employed by corporations and individuals who seek a predictable income stream over an extended period. These investments include
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