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2

In its simplest form, for a series of irregular and/or intermittent cashflows that defy description in traditional terms (like bond coupons, dividends, etc.)... XIRR tells you "what interest rate would a bank have to offer to give me the same end result, given all the same cashflows at the same times?". The implicit and necessary assumption being a ...


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When using a solid candlestick chart, a green candlestick means that the opening price for that period was lower than the closing price for that period. In other words, the price went up during that time. So in your example, the price dropped from the close of the prior period, but rose back up slightly by the end of the period. However, when a chart uses ...


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The option price and the implied volatility is a one-to-one relationship. At one time, there are many options trading in the market, with varying strike $K$ and time to maturity. If you can try to find the relationship between volatility smiled and $K$ or $t_{maturity}$, you will find the smile. There is no correct answer to this, and there is one possible ...


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Interesting choice, for a school project. If you want to get an idea for how much these things usually don't but sometimes can and do move around, have a look at LQD or HYG/JNK, these being respectively the "investment grade" (ie duller) and "high yield" (ie riskier) universes. The "yield" you're seeing is what you would get as ...


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"how much the interest rates fluctuate in a month?" If you mean the yields (i.e. Treasury rate + credit spread) or just Treasury rates then you can download some corporate bond index data here: https://fred.stlouisfed.org/searchresults/?st=OAS.


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Can I sell them after one month? Probably - it depends on what type of bond and how liquid (easy to sell) it is. If yes, will I still get the bond yield/12? Maybe - but more than likely you'll sell it for more or less than what you paid for it. You do get whatever interest accrues between the time you bought the bond and the time you sell it. The two main ...


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Suppose, your home currency is USD, and you fancy a EUR-denominated corporate bond quoted 99-99.5. This is bid-offer clean price. You pay USD spot rate0 * (clean offer price0 + accrued0) * notional. You should assume that you borrow this money and pay interest on it. There's a risk that the bond issuer will default. If that doesn't happen, then in 1 month ...


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Other than the books described by @develarist, there are also some alternative considerations which I have grouped into overall subjects: Financial econometrics/Financial modelling: Analysis of Financial Time-Series by Ruey S. Tsay. The book gives you a comprehensive introduction to econometric modelling of financial time-series, including stylized facts of ...


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Brooks - Introductory Econometrics for Finance is a very comprehensive, accessible overview of all the mainstream models for capturing non-normality, serial correlation, non-stationarity and other properties of financial returns, data, and volatility, bundled with plenty of reproducible examples. Mills and Markellos - The Econometric Modelling of Financial ...


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