amortizing securities and reinvestment risk

I think we are trying to dig too deep. Amortizing bonds have higher prepayment and reinvestment risk than non-amortizing bonds but smaller interest rate risk.

If we ask Chad to move this to General Discussion can we continue to dig deep?

DarienHacker, it’s a very interesting discussion but outside of the scope of Level I exam. by the way I wouldn’t mind talking about interest rates models. it seems like that where this discussion is heading - using an interest rate model to calculate re-investment risk depending on the bond cash flows or its properties (YTM, maturity, etc).

So start talking about interest rate models…

very busy, debugging a program … can participate in a discussion, don’t want to initiate anything heavy at this point Joey, you are welcome to start. it seems like you wanted to talk about CIR model.

Your programs have bugs?