IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6463-506-5_14.html

Bond Term Structure and Duration to Reduce Risk

In: Proceedings of the 2024 4th International Conference on Enterprise Management and Economic Development (ICEMED 2024)

Author

Listed:
  • Weibo Jiang

    (Foreign Economic and Trade University)

Abstract

In the investment market, investors face various risks every day. However, rare investors fully understand how to diversify by DCF methods and duration methods. Everyone is risk-averse, in order to reduce the risk, investors need to diversify their portfolio, in which bonds is a hully important part. The paper will show us how to use DCF methods and duration method to hedge the risk by balancing proper weight of each certain of bond. In order to make the method more convincing and easier to understand, argument process shows how adopt a specific method to analyze two bonds- “Bright Diary” and “Huatai Securities Co., Ltd.” in a specific situation and show how to use this method to avoid risks. The conclusion shows by purchasing specific share of different bond, the portfolio will be less affected by interest rate. In other words, the risk has been hedged and this will greatly help the investors to make their future investing strategies.

Suggested Citation

  • Weibo Jiang, 2024. "Bond Term Structure and Duration to Reduce Risk," Advances in Economics, Business and Management Research, in: Hongbing Cheng & Sikandar Ali Qalati & Noor Sharoja Binti Sapiei & Mazni Binti Abdullah (ed.), Proceedings of the 2024 4th International Conference on Enterprise Management and Economic Development (ICEMED 2024), pages 113-119, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-506-5_14
    DOI: 10.2991/978-94-6463-506-5_14
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:advbcp:978-94-6463-506-5_14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.