P1.T4 Portfolio duration and convexity

[Aleksander Hansen]

Question 18.2
Under choice c) how do you get that the convexity of the bullet is ~ 50years^2?
I was thinking ~ 7years^2 = 49, which is close to the answer for the bullet of 50.46?

 

[Suzanne Evans]

Question 18.2
Under choice c) how do you get that the convexity of the bullet is ~ 50years^2?
I was thinking ~ 7years^2 = 49, which is close to the answer for the bullet of 50.46?

Hi Aleksander,

Can you please post your question above under the same thread as the original question? This will provide quicker response time on Davids part, therefore it won't be delayed with me having to research the question. I believe this is the question you are referencing where you will need to post your above question: http://forum.bionicturtle.com/threads/p1-t4-18-portfolio-duration-and-convexity.5540/

Thanks for your understanding and participation in the forum!
Suzanne

 

[David Harper CFA FRM]

I have 50 years^2, not 50^2 years, to indicate the units are years^2... or maybe i should write "squared-years?"

So i agree with ~49, but am not sure how to better express years^2. Now, i realize you are fancy pants with the symbols, but I don't know how you do that (ASCII codes or something?)...

 

[David Harper CFA FRM]

@Suzanne: normally that would be extremely helpful, i just happened to recall this one without reference, which never happens, so your help as you gave it is much appreciated!

 

[Aleksander Hansen]

Hi Aleksander,

Can you please post your question above under the same thread as the original question? This will provide quicker response time on Davids part, therefore it won't be delayed with me having to research the question. I believe this is the question you are referencing where you will need to post your above question: http://forum.bionicturtle.com/threads/p1-t4-18-portfolio-duration-and-convexity.5540/

Thanks for your understanding and participation in the forum!
Suzanne

My bad, Suzanne... Will do in the future.

 

[Aleksander Hansen]

I have 50 years^2, not 50^2 years, to indicate the units are years^2... or maybe i should write "squared-years?"

So i agree with ~49, but am not sure how to better express years^2. Now, i realize you are fancy pants with the symbols, but I don't know how you do that (ASCII codes or something?)...

So obviously not of great urgency, however;
Scientific Word [or Scientific Workplace for the whole suite] is great for equations.
Beats the s** out of Microsoft's equation functionality which takes too long even to bother with.
Also let's you solve the equations you type in symbolically or numerically, as well as produce fancy plots of whatever you type in. It's basically a WYSIWYG LaTeX engine, without having to bother with all the coding of regular TeX/LaTeX publishing (which looks great, much better than MSFT) Many technical papers, as well as [most?] Springer books, which tend to be on the math-heavy, side use it.

Nowadays you can get some of the same functionality in Mathematica [and to a lesser degree Matlab] although those are really made for numerical and matrix computation, respectively, rather than just publishing/typesetting.

 

[Aleksander Hansen]

I have 50 years^2, not 50^2 years, to indicate the units are years^2... or maybe i should write "squared-years?"

So i agree with ~49, but am not sure how to better express years^2. Now, i realize you are fancy pants with the symbols, but I don't know how you do that (ASCII codes or something?)...

So obviously not of great urgency, however;
Scientific Word [or Scientific Workplace for the whole suite] is great for equations.
Beats the s** out of Microsoft's equation functionality which takes too long even to bother with.
Also let's you solve the equations you type in symbolically or numerically, as well as produce fancy plots of whatever you type in. It's basically a WYSIWYG LaTeX engine, without having to bother with all the coding of regular TeX/LaTeX publishing (which looks great, much better than MSFT) Many technical papers, as well as [most?] Springer books, which tend to be on the math-heavy, side use it.

Nowadays you can get some of the same functionality in Mathematica [and to a lesser degree Matlab] although those are really made for numerical and matrix computation, respectively, rather than just publishing/typesetting.