Modified Duration
Approximates percentage price sensitivity to a small change in yield.
Formula
Variables: D_M Macaulay duration; y yield; m compounding frequency
What it means
Approximates percentage price sensitivity to a small change in yield.
Example
A modified duration of 6 implies roughly a 6% opposite-direction price move for a 1 percentage-point yield change, before convexity.
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.
Related Formulas
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