# Modified duration (also used in German; less frequently bond sensitivity)

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- Post ID: 587690
- Modified: 2023-07-25T21:03:43+00:00
- Language: en

## Definition

A measure of how a bond's price has changed in response to a one-percent change in market interest rates (the modified duration of a bond measures the observed percentage change in its price for a given change in interest rates). The higher the bond sensitivity of a security, the greater will be the expected price gains or losses in the event of falling or rising market interest rates. - See Interest rate sensitivity. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 2.0.0