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

Nick Lioudis is a writer, multimedia professional, consultant, and content manager for Bread. He has also spent 10+ years as a journalist. Yarilet Perez is an experienced multimedia journalist and ...

Modified duration shows bond price sensitivity to yield changes; a 1.859% price change per 1% yield shift. Macauley duration measures average time to receive bond cash flows, key for calculating ...