A fixed-income portfolio’s duration is computed as the weighted ... Macaulay duration can be calculated manually as: The formula is divided into two sections. The first part is used to find ...

The formula for calculating the yield to ... convexity are two tools used to manage the risk exposure of fixed-income investments. Duration measures the bond's sensitivity to interest rate changes.

Meanwhile, the yield of a perpetual bond is determined using the following formula ... with other fixed-income securities and ...