Bond Sensitivity, Duration and Volatility - CA Final SFM (New Syllabus) Classes & Video Lectures

We simplify your financial learnings.
►►CA Final AFM Courses: www.sfmguru.co...
►►CMA Final SFM Courses:
www.sfmguru.co...
►►CFA Level 1:
www.sfmguru.co...
►►Subscribe here to learn more of Strategic Financial Management: goo.gl/HTY5SN
►►Read more on our website: www.sfmguru.co...
Sensitivity of a Bond with respect to changes in Desired Yield Rate
Interest rate sensitivity is a measure of how much the price of a fixed-income asset will fluctuate as a result of changes in the interest rate environment.
Securities that are more sensitive have greater price fluctuations than those with less sensitivity.
This type of sensitivity must be taken into account when selecting a bond or other fixed-income instrument the investor may sell in the secondary market.
Fixed-income securities and interest rates are inversely correlated. Therefore, as interest rates rise, prices of fixed-income securities tend to fall.
One way to determine how interest rates affect a fixed-income security's portfolio is to determine the duration. The higher a bond or bond fund's duration, the more sensitive the bond or bond fund to changes in interest rates.
The duration of fixed-income securities gives investors an idea of the sensitivity to potential interest rate changes. Duration is a good measure of interest rate sensitivity because the calculation includes multiple bond characteristics, such as coupon payments and maturity.
#Bonds , #Finance , #CAFinal , #FinancialLearning , #CAFinalSFM , #StrategicFinancialManagement , #SFM ,

[@yoktadayaramani5175]

15:45 Duration of the bond

[@BasicQT]

And then there are under rated teachers like you who can really make students "understand" a concept. Much thanks and regards.

[@words1139]

acha ky smjh aaya

[@bandilathamadhuri5605]

Sir your way of explanation is very beautiful and these lectures helps us a lot during our preparation time.

[@NikhilJobanputra]

Glad to hear that

[@yogeshkumarshankariya642]

Superb Sir, I am a student of MBA but I didn't get clarity from the university professors like you.

[@hammadshahid1438]

You speak very clear and its easy to grasp for beginners as well. keep it up and may GOD give you long life and happiness around you. Keep posting such videos to educate the society.

[@NikhilJobanputra]

Thanks and welcome

[@i.phani.a]

Should I feel sad not for talking ur classes or feel happy for finding ur videos atleast before one month for my final exam...
My one and only suggestion for SFM from now is CA Nikhil Jobanputra ...not even a second option allowed ...thank u so much sir...

[@kinjalpatel3297]

My theme line for ur teaching... STUDENT WANTING TO LEARN CONCEPTS OF SFM... LEARN FOR JOBANPUTRA SIR

[@ShaikSafia123456]

OMG... You made my concept so clear. Thanks a lot sir!! 😇

[@pratikchandak9679]

Thank you.. I found it useful for the CFA exam..

[@AnkitBhatt2002]

Best explanation for bonds!!!

[@NikhilJobanputra]

Glad you liked it

[@shubhamsachdeva6969]

Thank you sir
your way of teaching is very effective.

[@KA-oi4yf]

AMAZING EXPLANATION 👏 SIR PLEASE START TEACHING CORPORATE FINANCE OF US CMA

[@rajendrajoshi5596]

Ultimate presentation sir cleared all doubts thank you 🙏

[@ramyasrikunuku2136]

Very conceptual teaching sir 🙏🙏thank you

[@NikhilJobanputra]

You're most welcome

[@kinjalpatel3297]

Sensitivity in 8a calculated..Sir we say its same to duration of Bond.... ????

[@ukamakacyriacus4833]

Thank you sir! Well explained 👏👏

[@swetapatra]

sir, how did you get 4.35 PV factor for 1-6 years at 12:33

[@mrs.harshitajonipopli]

R/Sir
Sir, i am very confused in YTM as YTM is actual return to investors or Desired return/Expected return as YTM is the return which investor will earn if he hold the bonds till maturity then it should be actual return then how it could be effected while change the market rate of return in market...
I have seen your Yield class as well but i am not getting my answer
It's my humble request to please provide resolution of my doubt
Thank you

[@tinyconcepts6501]

Sir why we have multipled respective year from present value? Logic behind that????

[@rahuljani7765]

I'm also finding this, if you find any logic from anywhere please provide link for it in reply

[@dipeshyadav2174]

Suppose if present value of sixth month is highest then the duration(recovery time) would be near to that , the formula is made like that.

[@Hmez]

​@@dipeshyadav2174I am not satisfied tbh

[@thebosescommerce2784]

Bohot achha laga sir! 🙏

[@kinjalpatel3297]

Sir got it in course of next question u explained...

[@caruna6028]

Well explained

[@heymants0]

Thank you

[@Mak32189]

Great interpretation,

[@krishkrishna4778]

very nicely explained . thank you so much sir :)

[@NikhilJobanputra]

Thanks Krishna

[@aadilshaikh4319]

Determine the modified duration and Macaulay duration of Kshs. 800,000 bonds with a coupon rate of 6% and the yield to maturity of 8%. Interprete your results
Sir could you please assist me to solve this problem

[@i.reshmasharin8029]

Thank you so much sir

[@kinjalpatel3297]

Sir am somewhat uncomfortable with certain tough above avg parts of Portfolio... So pls suggest which Topics should be covered strongly to get atleast 60 from the attempted question if I am to do only 80 - 85 Marks paper assuming 15 marks Portfolio I may have to leave if it is tough for me.... I need Paper 1 - 55... Paper 2 - 55 - 60.. Paper 3 Audit 40- 45... Law 45 - 50... All subjects I will surely manage to grt my targets... SFM am bit worried & tensed... in Nov 18 had got 55 in SFM so am now more tensed as I haaaavvveeeee to clear my CA in this attempt....

[@rushubhvadnere9249]

thank you sir...

[@shakilahmadanjum6575]

Respected Sir... Please remove my confusion either volatility of bond price and and bond price volatility are same or otherwise?

[@NikhilJobanputra]

Both are same dear.

[@sudhakarjaiswar8115]

What is the difference between coupon rate and interest rate??

[@NikhilJobanputra]

Watch the video on Bond Basics, you will get the answer

[@emmanuelliato7283]

Am watching your videos from Africa but I can't understand the language

[@ritikagupta7744]

Thank you sir🙏

[@himalpandey800]

Thank you sir from NEPAL

[@nishasharawat2750]

Thank u sir

[@dilipupadhaya7470]

amazing sir

[@karlmarx995]

Sir. Thank you so much....lots of respect from Pakistan

[@ABC-wj8ud]

Sir,please upload videos in English.

[@aparnasaraf8881]

Thanks a lot sir

[@dimplegupta7622]

Thank you sir

[@csujjawalkumar]

Thank you sir