Setup Menus in Admin Panel

Sharing the Knowledge!™

Finance Knowledge and Information

What does modified duration mean?

SEARCHING
Suggestion/Report Error
modified duration
(DMOD; Dmod)
Noun


A metric that estimates the price change of an option-free rate-sensitive instrument or portfolio for interest rate changes of up to 100 bps (1%), computed by dividing Macaulay duration by the yield to maturity (y) and the number of discounting periods in a year (n).

Comment: 
When the term
top
© 2015-2024 Pecunica LLC.  All rights reserved.
;