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

<Previous Article In Volume
Next Article In Volume>

Bond Term Structure and Duration to Reduce Risk

Authors
Weibo Jiang1, *
1Foreign Economic and Trade University, Chaoyang District, Beijing, China
*Corresponding author. Email: 30052266@cc.peralta.edu
Corresponding Author
Weibo Jiang
Available Online 2 September 2024.
DOI
10.2991/978-94-6463-506-5_14How to use a DOI?
Keywords
bond; Duration; investment decision-making; fixed-income investment; interest rate risk
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.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

<Previous Article In Volume
Next Article In Volume>
Volume Title
Proceedings of the 2024 4th International Conference on Enterprise Management and Economic Development (ICEMED 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
2 September 2024
ISBN
978-94-6463-506-5
ISSN
2352-5428
DOI
10.2991/978-94-6463-506-5_14How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Weibo Jiang
PY  - 2024
DA  - 2024/09/02
TI  - Bond Term Structure and Duration to Reduce Risk
BT  - Proceedings of the 2024 4th International Conference on Enterprise Management and Economic Development (ICEMED 2024)
PB  - Atlantis Press
SP  - 113
EP  - 119
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-506-5_14
DO  - 10.2991/978-94-6463-506-5_14
ID  - Jiang2024
ER  -