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Journal of Financial and Quantitative Analysis Vol. 14 No. 2 1979

Measuring Bond Price Volatility

Miles Livingston

Abstract

In the literature dealing with bond price volatility, there have been two divergent approaches. On the one hand, theoretical papers have looked at bond price volatility in the instantaneous framework of the calculus. Using the derivative of bond price (P) with respect to yield to maturity (y), it has been shown that volatility is linearly related to this derivative (dP/dy). (See [10].)

DOI
10.2307/2330507
Volume
14
Issue
2
Pages
343
Sources
crossref openalex

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