modified duration definition

modified duration

Measure of the price volatility and interest rate sensitivity of a fixed-income financial instrument such as an interest bearing bond. Actually the Macaulay duration adjusted for compounding, it indicates the percentage change in the value of the instrument for each one percentage point change in prevailing interest rates.

modified duration is in the Investing and Securities & Futures Trading subjects.

modified duration appears in the definitions of the following terms: duration and Macaulay duration

This content can be found on the following page:

http://www.businessdictionary.com/definition/modified-duration.html