For example, if interest rates rose by 2% ... you would have a choice between two formulas: Macaulay Duration, which is expressed in years, and Modified Duration, the more modern measurement ...

Modified duration is a formula that measures the sensitivity ... the impact of interest rate changes on their investments. For example, when interest rates rise, bond prices decline, and vice ...

Key rate duration is calculated by applying small shifts to individual points on the yield curve and measuring the resulting change in a bond's price. The formula follows the standard duration ...