Duration
A measure of a bond's price sensitivity to interest rate changes — effectively the weighted average time to its cash flows.
Macaulay duration is the weighted-average time, in years, to receive a bond’s cash flows. Modified duration divides Macaulay by (1 + y/n) to give percentage price change per unit yield change. Effective duration handles bonds with embedded options (callable, putable) by repricing the bond at higher and lower yields.
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