Modified duration measures price sensitivity to interest rate changes. The calculation for modified duration is relatively straightforward. Modified duration is important for investors in determining ...

Because of the way bonds react to interest rate changes, some high-quality bonds can fall around 15%-20% from a single percentage point increase in interest rates. The beauty of bonds comes from the ...

In many ways, bonds are more complex than stocks. Investors use a host of different metrics to evaluate bond investments, and one involves a concept known as duration, which helps an investor ...