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What is Duration & Modified Duration? | Macauley Duration & Modified Duration calculations

What is Duration & Modified Duration? | Macauley Duration & Modified Duration calculations Modified Duration expresses the sensitivity of the price of a bond to a change in interest rate.
The price of a bond and interest rates have an inverse relationship, i.e. if the interest rates rise, the
price of the bond would fall and vice versa.
The modified duration explains the extent of rise or fall in bond price, given a change in interest rate.

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