The formula follows the standard duration calculation but isolates the impact of a rate change at a specific maturity: Key Rate Duration = (P- – P+) ÷ (2 × 0.01 × P0) Repeating this process ...

Use the formula triangle to establish the correct calculation by covering up what needs to be worked out. To work out speed, cover the S. To work out distance, cover the D. To work out time ...

Modified duration measures price sensitivity to interest rate changes. The calculation for modified duration is relatively straightforward. Modified duration is important for investors in ...

The discussion was opened by Sir William Thomson, who said he had no doubt the professor's figures represented, within very wide limits, the time that would be taken to reduce the disturbance to a ...