Just another chapter for the Statistics

And the new guy is Lognormal Distribution

if we set

then

If V is the price of a zero-coupon bond

so we have using continuous compounding instead of annual compounding,which implies .Thus,if is normally distributed,V has a lognormal distribution.

duration&convexity

use it to make a presentation of price-changing

and to discribe the change of cash flow which are made by the change of yield

present value&future value

barbell portfolio&bullet portfolio

modified duration&Macaulay Duration:D*=D/(1+y)

frequency of payments

开始了塔夫的一年

零下19度的午夜

打开潘多拉的盒子

幸好还有希望