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Direct Bankruptcy Costs

The bankruptcy costs that arise from cash outlays  that relate to bankruptcy process such as fees paid to lawyers, accountants, administrators, liquidators, and investment bankers involved in bankruptcy proceedings....

Discount Certificate

A structured product that gives the holder an opportunity to buy an underlying asset at less than market price (i.e., with a discount)....

Delta-1 Product

A financial product (derivative) that tracks the performance of an underlying asset on a one-to-one basis. In other words, if...

DRC

In connection with convertibles, it stands for discount reverse convertible; a reverse convertible which consists of a zero-coupon bond (discount bond) and a...

Discount Reverse Convertible

A reverse convertible which consists of a zero-coupon bond (discount bond) and a plain vanilla put option. The investor issues the put option (short put)...

Dollar Duration

A duration measure that is derived from multiplying a bond's modified duration by the bond price. It is the price change for a 100 basis points change in yield....

Dollar Convexity

A convexity measure that captures the the approximate change in a bond's dollar price that is not explained by duration. Dollar convexity= convexity ×...

Decompounding Interest Rate

A technique which is used to convert an interest rate of a given period into an interest rate of a...

Duration Gap

A measure of the mismatch between assets and liabilities. By definition, it is the weighted duration of assets minus the product of the...

Deprival Value

It is often known as value to the owner or value to the business. By definition, it is an asset...