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

Illya Gerasymchuk 2025-08-13 00:23

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