5.2 Duration as a Measure of Interest Rate Risk

In this section

• Macaulay Duration: Understanding Bond Sensitivity to Interest Rate Changes
  Explore the concept of Macaulay Duration, a crucial measure in bond investment that helps assess the sensitivity of a bond's price to interest rate fluctuations. Learn about its calculation, significance, and practical applications in bond portfolio management.
• Modified Duration: Understanding Bond Price Sensitivity to Interest Rate Changes
  Explore the concept of Modified Duration, a crucial measure of bond price sensitivity to interest rate changes. Learn how to calculate and interpret Modified Duration to optimize your bond investment strategies.
• Effective Duration for Bonds with Embedded Options
  Explore the concept of Effective Duration for bonds with embedded options, understanding its importance in accurately measuring interest rate risk for callable and putable bonds.
• 5.2.4 Key Duration Relationships
  • Understanding Duration and Time to Maturity in Bond Investments
    Explore the intricate relationship between bond duration and time to maturity, and learn how these concepts impact interest rate risk and bond pricing strategies.
  • Understanding Duration and Coupon Rate in Bonds
    Explore the intricate relationship between duration and coupon rates in bonds, and learn how these factors influence interest rate risk and bond price volatility. This comprehensive guide provides insights into bond investment strategies and risk management.
  • Understanding Duration and Yield to Maturity: Key Concepts in Bond Pricing and Risk Management
    Explore the intricate relationship between duration and yield to maturity, and understand how these concepts impact bond pricing and interest rate risk management.