Modified duration follows the concept that interest rates and bond prices move in opposite directions. This formula is used to determine the effect that a 100-basis-point (1%) change in interest ...

These organizations often hold bonds in their fixed-income portfolios with prices that can fluctuate based on interest rate changes. While the underlying idea behind modified duration is simple ...

Bond duration is a measurement that tells us how much a bond’s price might change if interest rates ... which is expressed in years, and Modified Duration, the more modern measurement, which ...

This chapter shows the mathematical development of the equations for duration and convexity and uses the Taylor s Series expansion to show the equation for estimation of the predicted bond price, ...

a bond's modified duration is an estimate of how much a bond's price will rise or fall with a 1% change in the yield to maturity," Reilly says. If the Fed does indeed keep rates higher for longer ...