FT MarketWatch

Modified duration

A measure of the price sensitivity of a bond to Interest rate Movement. Equal to the Macaulay Duration divided by (1+ (bond yield/k)) where k is the number of compounding periods per year. It is therefore inversely proportional to the approximate percentage change in price for a given change in Yield. This is one of two ways to calculate duration, the other being Macaulay duration.

Related Terms: 5 Interest, Interest rate, Movement, Ratio, Yield
Other Related Pages: Category: Bonds Starting With: M
Semi Related Terms: 679 CLICK HERE TO VIEW
10-Q, 10-K, 12b-1 funds, Allowance for depreciation, Asset/equity ratio, Average collection period, Adjustable rate, Accrual bond, Accrual of discount, Accrued interest, Accumulation bond, Agency bond, American Municipal Bond Assurance Corporation, Amortization of premium, Asked price, Asking price, Assumed bond, At par, Authority bond, All or any part, At best, At call, Adjustable rate preferred stock, Adjusted futures price, At risk, Add-on service, Abstract of title, Action to quiet title, As is, Assignment to creditors, Attorney in fact, Adjustable Rate Mortgage, Advance rate, Annual Percentage Rate, Applicable federal rate, Assignment of mortgage, A shares, Average price per share, Aggregate exercise price, At the money, Absorption rate, Age-weighted plan, Average contribution percentage, Across the board, Additional paid-in capital, Against the box, At the bell, At the close, At the figure, At the full, At the market, At the opening order, Away from the market, Below the line, Books of final entry, Books of original entry, Book value per share, Burn rate, Banking Act of 1933, Baby bond, Bearer bond, Benchmark interest rate, Bid-to-cover ratio, Blanket bond, Bond anticipation note, Bond Buyer, Bond circular, Bond crowd, Bond equivalent yield, Bond fund, Bond indenture, Bond market, Bond ordinance, Bond quote, Bond resolution, Bond swap, Brady bond, Bullet bond, Bureau of Public Debt, Brought over the wall, Buying on margin, Buy on close, Buy on opening, Buy the book, Basic earnings per share, Balance of payments, Bank Rate, Base interest rate, Base period, Base-year analysis, Board of Governors, Breaking the syndicate, Bill of exchange, Bill of sale, Breach of trust, By the book, Base rate, Blended rate, Broker loan rate, B shares, Blackout period, Break-even tax rate, Breadth-of-market theory, Beat the gun, Calendar year, Capitalized interest, Cash asset ratio, Cash ratio, Collection ratio, Commercial year, Cost Of Goods Sold, Cost of sales, Compound interest, Continuous compounding, Callable bond, Called bond, Call price, Catastrophe bond, CAT bond, Certificateless municipal bond, Certificate of Participation, Collateralized Bond Obligation, Combination bond, Committee on Uniform Securities Identification Procedures, Commodity-backed bond, Consolidated bond, Conversion parity price, Conversion price, Conversion ratio, Corporate bond equivalent, Coupon bond, Coupon rate, Coupon yield, Current coupon bond, Current production rate, Current yield, CUSIP number, Call money rate, Code of procedure, Capitalization of income, Capitalization rate, Cap rate, Civilian unemployment rate, Consumer Price Index, Cost of Living Adjustment, Cost-of-living index, Council of Economic Advisers, Cash price, Chasing the market, Cheapest to deliver, Chicago Board of Trade, Crop year, CINS number, Cost-of-living rider, Certificate of stock, Cost of carry, Certificate of title, Contract for deed, Cancellation of debt, Certificate of Claim, Consumer interest, Cost of debt capital, Cost of funds, Cure period, C shares, Call ratio backspread, Class of options, Close to the money, Certificate of Occupancy, Cloud on title, Cash or Deferred Arrangement, Class A Shares, Class B Shares, Crash of 1929, Crash of 1987, Compound arbitrage, Coefficient of determination, Certificate of delivery, Close a position, Closing price, Cornering the market, Curbs in, Deposit in transit, Discrete compounding, Date of issue, Date of payment, Deep-discount bond, Deferred interest bond, Discount bond, Discounted bond, Dollar bond, Dollar price, Dual currency bond, Duration gap, Division of Enforcement, Division of Investment Management, Division of Market Regulation, Date of record, Distribution period, Dividend in arrears, Dividend payout ratio, Dividend rate, Desk (the), Discount rate, Division of labor, Delivery price, De-escalation clause, De facto, Doing business as, Durable Power of Attorney, Date of maturity, Debtor in possession, Debtor-in-possession financing, Deed of Release, Deed of Trust, Discharge of bankruptcy, Discharge of lien, Due-on-sale clause, Deep in the money, Deep out of the money, Deed of Surrender, Department of Housing and Urban Development, Dogs of the Dow, Depth of market, Discount yield, Efficiency ratio, Effective annual interest rate, Eurodollar certificate of deposit, Exact interest, Escrowed to maturity, Eurodollar bond, Euroyen bond, Either-or order, Exchange rate, Earnings yield, Economic growth rate, E-mini, Exchange for futures, Exchange for physical, Exchange of spot, Effective tax rate, Exchange ratio, Explicit interest, Exercise ratio, Employee Retirement Income Security Act of 1974, Exclusion ratio, First In First Out, Fiscal year, Fixed-charge coverage ratio, Form 10-Q, Fidelity bond, Flat yield curve, Flight to quality, Floating-rate bond, Flow of funds, Free bond, Full price, Fill or kill, Front-ending an order, Floating exchange rate, Foreign exchange rate, Forward exchange rate, Forward P/E, Fully diluted earnings per share, Factors of production, Favorable balance of trade, Federal Reserve Discount Rate, Free market price, Forward price, Futures price, Fee-for-service, Form 8-K, Form S-1, Fixed rate, Fixed-rate loan, Fixed-Rate Mortgage, Floating rate, Forward interest rate, Forward Rate Agreement, Family of funds, Fund of funds, Free right of exchange, Federal ID Number, Federal Tax Identification Number, General Obligation Bond, Global bond, Gold bond, Government Bond, Guaranteed bond, G-7, GDP implicit price deflator, General Agreement on Tariffs and Trade, G-8, Grace period, Gather in the stops, High-grade bond, High yield, Housing bond, Hart-Scott-Rodino Act of 1976, Hit the bid, House of issue, Hedge ratio, Hang Seng Index, Holder in due course, Hang out loan, High-ratio mortgage, Home equity line of credit, HUD-1 statement, Historical yield, Holding period, Hammering the market, Held at the opening, Holding the market, Horizontal price movement, Interest-bearing, Income bond, Index bond, Index-linked bond, Industrial revenue bond, In escrow, Installment bond, Insured bond, Interchangeable bond, Interest rate collar, Interest rate risk, Interest rate swap, International Securities Identification Number, Inverse floater, Inverted yield curve, Investment-grade bond, Irredeemable bond, In-house, Investment Advisor Act of 1940, Investment Company Act of 1940, Indicated yield, In line, Inflation rate, Interest rate futures, Interbank Rate, Insurable interest, Insider Trading sanctions Act of 1984, Interest, Interest expense, Internal Rate of Return, Indication of interest, In intestacy, Inter vivos trust, Imputed interest, Interest deduction, Interest-only loan, Interest rate, Interest rate cap, Interest rate ceiling, Interest rate floor, In play, In-process research and development, Interest rate option, I/O strip, Inchoate interest, Interest-only strip, Income replacement ratio, In-service withdrawal, Inverse relationship, Imbalance of orders, In and out, In sympathy, In the tank, Junk bond, Jumping the gun, Last In First Out, Liquidity ratio, Lender of last resort, Law of one price, Long Bond, Lending at a rate, Limit-on-close order, Limit price, Law of demand, Law of supply, Limit move, London Inter-Bank Offer Rate, Letter of comment, Lockup period, Legal age, Line of credit, Loan-to-cost, Loan-to-value, Loan-value ratio, Lock-in, Leading the market, Locked in, Long-term gain or loss, Level I quotes, Maintenance bond, Market conversion price, Medium-term bond, Minimum yield, Minus yield, Modified duration, Moral obligation bond, Mortgage bond, Municipal bond, Municipal bond fund, Municipal bond insurance, Municipal Bond Insurance Association, Municipal revenue bond, Make a market, Margin rate, Market on close order, Mark-to-market, Medium of exchange, Marginal propensity to consume, Market rate, Money at call, Mortgage interest deduction, Mortgage rate, Mill rate, Maximum price fluctuation, Movement, Net interest margin, Negotiable certificate of deposit, Negotiable Order of Withdrawal, Negative yield curve, Nine-Bond Rule, Nominal rate, Non-callable bond, Non-interest-bearing note, Normal yield curve, Notice of Sale, National Association of Securities Dealers, National Association of Securities Dealers Automated Quotations system, Net capital ratio, Notice period, Notice of Default, National Association of Real Estate Investment Trusts, Normal retirement age, Net change, Off the books, One time charge, Other current assets, Other long term liabilities, Overhead ratio, Office of Thrift Supervision, Ordinary interest, Obligation bond, Offering price, Out-of-favor, Over-the-Counter, On-floor order, On margin, Or better, Other income, Operating rate, Open interest, One-share one-vote rule, Opinion of title, On account, On-the-spot loan, Option price, Out of the money, Old age, survivors, and disability insurance, On-balance volume, Odd lot buy/sell ratio, On close, One man picture, On open, On the opening, Pooling of interests, Pro forma, Par bond, Pass-through coupon rate, Payment-in-kind security, Performance bond, Pickup bond, Positive yield curve, Premium bond, Premium over bond value, Price Value of a Basis Point, Prior lien bond, Privileged bond, Public bond, Public purpose bond, Put bond, Payment for order flow, Payout ratio, P&L, Primary earnings per share, Provision for income taxes, Price index, Producer Price Index, Parity price, Price limit, Proportional representation, Public offering price, Per stirpes, Power of Attorney, Personal interest, Prepaid interest, Prime rate, Prioritization of debt, Prime rate fund, Price spread, Paid-in capital, Paid-in surplus, Payback period, Percent held by institutions, Private Investment in Public Equity, Preservation of capital, Put ratio backspread, Proportional tax, Profit ratio, Painting the tape, Price range, Price-weighted index, Put/call ratio, Quiet period, Retention rate, Return of capital, Return on Capital, Return on Invested Capital, Return on Total Assets, Run rate, Real interest rate, Regulation Q, Reserve ratio, Rate covenant, Redeemable bond, Redemption price, Registered coupon bond, Regular-way delivery, Revenue bond, Reading the tape, Regulation D, Regulation G, Regulation T, Regulation U, Round of funding, Rule 15c3-1, Rules of Fair Practice, Rate of exchange, Reciprocal of European terms, Real economic growth rate, Retail Price Index, Ratio, Regulation A, Right of first refusal, Right of rescission, Right to Know, Rate-improvement, Rate lock, Renegotiable rate, Revolving line of credit, Right of recourse, Rule of 78, Ratio calendar combination, Ratio calendar spread, Ratio spread, Ratio write, Redemption period, Right of redemption, Retirement Equity Act of 1984, Ratio analysis, Return on Capital Employed, Rate of return, Real rate of return, SG&A, Sight letter of credit, Simple interest, S&L, Savings Bond, Secured bond, Self-supporting bond, Serial bond, Series bond, Series EE bond, Series HH bond, Short bond, Split coupon bond, Spot rate, Step-up bond, Straight bond, Super sinker bond, Surety bond, Segregation of securities, Sell the book, Stop price, Savings rate, Standard of living, Swap rate, Settlement price, Spot price, Second-to-die insurance, Short interest, Short interest ratio, Subscription price, Statute of Limitations, Satisfaction of debt, Security interest, Start rate, Staggered board of directors, Selling the spread, Savings Incentive Match Plan for Employees, Share price, Split-adjusted price, Selling short against the box, Sensitivity analysis, Shorting against the box, S Corporation, Short-term gain or loss, Standard mileage rate, Subchapter M, Subchapter S Corporation, Schedule C, Securities Act of 1933, Securities Acts Amendments of 1975, Securities Exchange Act of 1934, Seek a market, S&P phenomenon, Times interest earned, Tax-exempt bond, T-Bill, Term bond, Term to maturity, Treasury Bond, Take a position, Two-sided market, Two-way market, Trailing P/E, Tenancy by the entirety, Teaser rate, Truth in Lending, Two-step mortgage, Tax-free bond fund, Tenancy at will, The Street, Timing the market, Tax identification number, Taxpayer Relief Act of 1997, Tax Reform Act of 1986, Tax Reform Act of 1993, Take a bath, Target price, U.S. Government Agency Security, U.S. Savings Bond, U.S. Treasury, U.S. Treasury Bill, U.S. Treasury Bond, U.S. Treasury Note, U.S. Treasury Securities, Unlimited tax bond, Unemployment rate, Unearned interest, Unit of trade, Unit of trading, Variable rate, Variable ratio write, Vesting period, Variable ratio plan, With interest, Whisper number, Wage price spiral, Waiver of premium, W-2 Form, W formation, When, as, and if issued, X or XD, Year-over-year, Year-To-Date, Yankee bond market, Yield, Yield burning, Yield curve, Yield elbow, Yield spread, Yield to call, Yield to maturity, Yield to worst, Y shares, Zero-coupon bond