Abstract
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:
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Total amount of interests;
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Net Present Value;
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Adjusted Present Value.
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References
L. PECCATI (1987): ‘DCF e risultati di periodo’, Atti delVXI Convegno A-MASES, Aosta.
R.B. PLATT (1986): Controlling Interest Rate Risk, John Wiley & Sons, New York.
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© 1994 Physica-Verlag Heidelberg
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Gota, M.L. (1994). APV Sensitivity with Respect to Interest Rates Fluctuations. In: Peccati, L., Virén, M. (eds) Financial Modelling. Contributions to Management Science. Physica-Verlag HD. https://doi.org/10.1007/978-3-642-86706-4_15
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DOI: https://doi.org/10.1007/978-3-642-86706-4_15
Publisher Name: Physica-Verlag HD
Print ISBN: 978-3-7908-0765-3
Online ISBN: 978-3-642-86706-4
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