NISM 21B Portfolio Managers Exam Notes

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  • Current Yield: Annual coupon divided by bond price.
  • Price-Yield Relationship: Inverse; prices fall as yields rise.
  • Interest Rate Risk: Bond prices sensitive to rate changes.
  • Duration: Measures price sensitivity to yield changes.
  • Macaulay Duration: Weighted average time to cash flows.

NISM 21B Portfolio Managers

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