Understanding duration can help investors decide which bonds are right for them. First of all, you shouldn’t confuse the financial term “duration” with a timeframe. In the bond world ...
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What Is Key Rate Duration and How Do You Calculate It?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 ...
Modified duration is a formula that measures the sensitivity of ... who developed the concept of bond duration in the 1930s. Calculating the Macaulay duration is the most difficult part of ...
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