C crgarcia Jul 23, 2009 #1 I'm being told interest rates would not need to double, as the relationship is not linear. Please give me the formula and some explanation, please.
I'm being told interest rates would not need to double, as the relationship is not linear. Please give me the formula and some explanation, please.
M Martinghoul Jul 23, 2009 #2 Here's the formula: http://www.asset-analysis.com/bonds/bonytm.html Just put the formula into Excel (hint: it already has functions for this) and you will be able to examine the relationship between yields and prices to your heart's content.
Here's the formula: http://www.asset-analysis.com/bonds/bonytm.html Just put the formula into Excel (hint: it already has functions for this) and you will be able to examine the relationship between yields and prices to your heart's content.
