CI Market Dashboard

We have put together a collection of market indicators and track them to help you gauge the direction of the market.


CI Analysis Worksheets

Interactive analysis templates covering DuPont analysis (return on equity), valuing stocks the Warren Buffett way, and more to come.


CI Blog Feed

Big Changes at Apple
posted 3 hours ago by Joe Lan

Facebook Beats Estimates as Advertising Revenue Grows
posted 4 hours ago by Wayne Thorp

Apple Beats Estimates; Announces 7-for-1 Stock Split
posted 4 hours ago by Wayne Thorp

ValueWalk.com for Value Investors
posted 1 day ago by Jaclyn McClellan

Tech Earnings
posted 2 days ago by Joe Lan



Computerized Investing > Fourth Quarter 2012

Determining Bond Price Volatility

PRINT | | | | COMMENTS (2) | A A   Reset

by Wayne A. Thorp, CFA

The stock market volatility of the last few years has driven many to seek a safe haven in fixed-income investments in the hopes of lowering the risk of their portfolios. However, historically low interest rates have also accompanied this market volatility. Eventually, rates will begin to rise, which will lead to an erosion of bond portfolio values.

To help evaluate the volatility inherent in fixed-income investments, this installment of Spreadsheet Corner presents a template that allows you to calculate bond values based on knowledge of the coupon rate, the length of time to maturity and the current market interest rate. In addition, you will be able to see how bond prices can change with changes in market interest rates. In particular, you can examine the effects of changing interest rates on the total value of a bond portfolio, such as a bond mutual fund.

...To continue reading this article you must be a Computerized Investing Subscriber.

Gain exclusive access to this article and all of the benefits and investment education a Computerized Investing subscription offers.

SUBSCRIBE TODAY for just $24.
Log in
Already a CI subscriber? Login to read the rest of this article.

Subscribe
A subscription to Computerized Investing includes a monthly email and access to the CI Website, all of which aim to benefit your investing skills with respect to computers and the Internet.