A new relationship is derived for net present value (NPV) per dollar invested that is composed entirely of interest rates. The rates are mark-ups to the cost of capital, each mark-up being an internal rate of return (IRR) embedded in the complex plane. The result has been shown before, but only...

The time value of money (TVM) equation is a core equation in finance. It is often differentiated to obtain the interest rate sensitivity of whatever is being valued. In fixed income analysis the result is incorporated into the concept known as duration. It is well known, however, that the...

It is well known that the various formulas for the duration of a bond give inaccurate results. Their accuracy can be improved by the addition of extra elements, such as convexity or duration vectors. But the results remain inaccurate. A recent paper proposed a new formula for the duration of a...