CALCULATION OF CERTAIN BONDS DURATION ON THE FINANCIAL MARKET OF BOSNIA AND HERZEGOVINA

Original scientific paper
Autor: dr Almir Alihodžić
JEL: G1, G11, G12
doi: 10.5937/bankarstvo1401064A
SCINDEX

Summary: Duration is the main measure of price sensitivity which is used on the bond market. It indicates how much the bond price would change under the impact of change in the market interest rates. There is an inverse link between the bond price and yield through the interest rates. With the rise and fall of interest rates bond holder makes capital gain or loss. The main objective of this work is to determine sensitivity of certain bonds on the financial market of Bosnia and Herzegovina (BiH) to the change in maturity term, and the importance of bonds as an alternative form of financing.

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