APV Sensitivity with Respect to Interest Rates Fluctuations

  • Maria Luisa Gota
Conference paper
Part of the Contributions to Management Science book series (MANAGEMENT SC.)


The aim of this paper is to provide some simple relations in order to evaluate how much the yield is influenced by a change in the internal rate of return in a contract of division into instalments. These relations can be used to get some hedging results (see, i.e., Platt (1986)). I consider three parameters useful to describe the yield of the investment:
  • Total amount of interests;

  • Net Present Value;

  • Adjusted Present Value.


Opportunity Cost Cost Rate Rate Fluctuation Contractual Rate Interest Rate Risk 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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  1. L. PECCATI (1987): ‘DCF e risultati di periodo’, Atti delVXI Convegno A-MASES, Aosta.Google Scholar
  2. R.B. PLATT (1986): Controlling Interest Rate Risk, John Wiley & Sons, New York.Google Scholar

Copyright information

© Physica-Verlag Heidelberg 1994

Authors and Affiliations

  • Maria Luisa Gota
    • 1
  1. 1.Istituto di Matematica Finanziaria, Facoltà di Economia e Commerciodell’Università di TorinoTorinoItaly

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