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Dear John,
Please explain me why the following formula Delta P=(-Dxdelta xP)/(1+i)
Within the text book it is given as mentioned, within the exam kit instead of devidind it is multiplied by 1+i.
Which is correct?Although there are two ways of calculating the MIRR, the only way you need for the exam is the way using the formula that is given on the formula sheet.
I’m not asking about the calculation of MIRR. It is clear to me, I can use both ways. The only problem I have is the formula for calculating the change in the price of the bond. It is included within the textbook as well as within the exam kit. But they are given differently. So I don’t know which one is correct. Please help tomoorow I’ll be on my exam.
If you are not asking about MIRR, then why did you title your post MIRR ? !!
I can’t answer your other question without seeing the whole thing.
I’m very very sorry. I was asking about modified duration. Probably I was very tired and made a chaos.
I was on my exam yesterday.
Hopefully I’ll pass it. Thank you and I’m so sorry.
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