Modified duration - why not use the present value?
Why do you not use present value do calculate cash flow at time t? Also,I believe the market price should be a discounted value as well.
Thanks,
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Why do you not use present value do calculate cash flow at time t? Also,I believe the market price should be a discounted value as well.
Thanks,
Comments
Yup @graham formula needs fixing there
If this is the table you're referring to, I think it's ok because the cash flows are already discounted: