#bonds #finance
Bond's duration is approximately equal to the percentage change in price for a given change in yield, and may be thought of as the
elasticity of the bond's price with respect to discount rates -
it is not elasticity, because yield change is absolute, not relative
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Bond valuation - Wikipedia, the free encyclopediansitivity of a bond's market price to interest rate (i.e. yield) movements is measured by its duration, and, additionally, by its convexity.
Duration is a linear measure of how the price of a bond changes in response to interest rate changes. <span>It is approximately equal to the percentage change in price for a given change in yield, and may be thought of as the elasticity of the bond's price with respect to discount rates. For example, for small interest rate changes, the duration is the approximate percentage by which the value of the bond will fall for a 1% per annum increase in market interest rate. S Summary
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