Modified Duration - How To Discuss

Modified Duration,

How To Define Modified Duration?

The revised period is a formula that measures the change in the value of a security in response to a change in interest rates. The revised period follows the notion that interest rates and bond prices rise in opposite directions. This formula is used to determine the effect of interest rate changes on bond prices by 100 basis points (1%).
The revised period measures the change in the price of a security in response to a change in the interest rate of 100 interest points (1%).
The revised period is an extension of the Macaulay duration and, in order to calculate the revised period, the Macaulay duration must first be calculated.
Bondholders calculate the average time of the Macaulay period before receiving cash flow from bonds.
The longer the bond lasts, the longer it lasts, and the shorter the length of the coupon and interest.

Literal Meanings of Modified Duration

Modified:

Meanings of Modified:

Make partial or minor changes to (something)

Sentences of Modified

He may be willing to change his mind

Synonyms of Modified

convert, recast, improve, adjust, alter, remodel, reshape, revamp, transform, remould, refashion, restyle, make alterations to, amend, change, vary, redo, redesign, refine, adapt, reform, make adjustments to

Duration:

Meanings of Duration:

When something happens.

Sentences of Duration

Flight over eight hours

Synonyms of Duration

perpetuation, extent, time span, time scale, continuance, fullness, time, length of time, period, prolongation, full length, length, term, spell, span, stretch, continuation

Modified Duration,

Modified Duration means,

The revised term is a formula that measures the change in the value of a security in response to a change in interest rates. The revised term follows the notion that interest rates and bonds move in opposite directions. This formula is used to determine the effect of interest rate changes of 100 basis points (1%) on the value of bonds.
The changed period measures the change in the price of securities in response to a change in the interest rate of 100 basis points (1%).
The modified period is an extension of the Macala period, and in order to calculate the revised period, the Macala period must be calculated first.
Macaulay's duration is the average time when the security will receive cash flow from the security.
The longer the bond, the longer its duration, and the longer the bond coupon and interest rate, the shorter its duration.

Literal Meanings of Modified Duration

Modified:

Sentences of Modified

Maybe he's ready to change his mind.

Synonyms of Modified

reduce, reconstruct, permute, blunt, permutate, revise, moderate, restrict, soften, abate, diminish, reorientate, tone down, mitigate, tweak, remake, limit, dull, qualify, temper, reorganize, rework, customize, lessen

Duration:

Meanings of Duration:

The time when something happens.

Sentences of Duration

Rent a motorcycle on vacation.

Modified Duration,

What is Modified Duration?

Meaning of Modified Duration: James Chen, CMT, is an experienced trader, investment advisor and global market strategist. He is the author of John Wiley & Sons' books on trade and technology trade and has been a visiting researcher at CNBC, Bloomberg TV, Forbes and Reuters, among other financial companies.
The revised period measures the change in the value of the security in response to a change in interest rate of 100 basis points (1%).
The modified period is an extension of the Macala period and, in order to calculate the modified period, it is necessary to calculate the Macala period first.
Macaulay's duration is the average weighted time when the security will receive cash from the security.
The longer a bond matures, the longer its term, and the longer the coupon and interest rate on a bond, the shorter its term.