RATE SHOCK LAB
Move the yield.
Watch the price bend.
APPROX. PRICE CHANGE—
NEW APPROX. PRICE—
-300 bp+100 bp+300 bp
Approximation: ΔP/P ≈ −Modified Duration × Δy + ½ × Convexity × Δy². Best used for analytical shocks, not as an exact pricing engine.