This article derives a new formula for the yield elasticity of bond price. The formula provides accurate results without resorting to complex mathematics, and gives new meaning to the concept of duration in fixed-income analysis

There is an apparent rift between the way banks calculate and the way humans think.On the one hand, exponential discounting has played a centuries-long, lead role in financial analysis. On the other hand, experiments by behavioral economists demonstrate that hyperbolic discounting is better than...

Multiple interest rate analysis (MIRA) is the study of all interest rate solutions to the time value of money (TVM) equation. These solutions include not only the orthodox solution produced by a financial calculator or spreadsheet but also the unorthodox solutions that a typical financial...

Experimentalists researching individual time-preference behavior report that hyperbolic discounting explains their results better than exponential discounting. Financial institutions almost exclusively employ exponential discounting, so these results expose a rift in thought between financial...