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Illya Gerasymchuk
Entrepreneur / Engineer
User Illya Gerasymchuk -

2025-08-13 00:24

larger modified duration value means that the bond's price is more sensitive to changes in bond yields this makes sense. the longer the time to maturity - the longer the risk and term premia comes into play

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modified duration quantifies how much a bond’s price will change for a 1% change in bond yields while the bond pays fix sums - its market value/price varies, so its yield is not fixed

πŸ’¬