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8 Cards in this Set
- Front
- Back
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Accounting method in which the assets and liabilities of the FI are recorded at historic values.
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book value accounting
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Accounting method in which the assets and liabilities of the FI are revalued according to the current level of interest rates.
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market value accounting
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Valuing securities at their current market price.
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marking to market
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The weighted-average time to maturity on an investment.
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duration
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The percentage change in the price of a bond for any given change in interest rates.
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interest elasticity
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the dollar value change in a security's price to a 1 percent change in the return on the security
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dollar duration
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Duration divided by 1 plus the interest rate.
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modified duration
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The degree of curvature of the price-yield curve around some interest rate level.
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convexity
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