BondStats
Learn / Formula / Dollar Duration
DURATION & RISK

Dollar Duration

Expresses first-order rate sensitivity in price units rather than percentage terms.

Formula

Dollar duration = Modified duration × Price

Variables: Modified duration; full price

What it means

Expresses first-order rate sensitivity in price units rather than percentage terms.

Example

A price of 102 and modified duration of 5 gives dollar duration of about 510 per 100 units of proportional yield change.

How to interpret it

This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.

BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.