Modified Duration
Definition of Modified Duration
Related Terms
Rally
Block Trade
Shares change hands between companies after the price of the security is privately negotiated. Most block trades are routed through investment banks and executed outside the conventional market.
Best Efforts Underwriting/Offering
Irredeemable Debentures
Discounted Cash Flow
The formula to calculate discounted cash flows is:
DCF = Cash Flow Year 1 / (1+r1)^1 + Cash Flow Year 2 / (1+r2)^2 + Cash Flow Year N / (1+r)^n

