My understanding of duration is " the senstivity of bond prices per 100 BPS change in yield." Is thr sm other interpretation of Duration as well? Can it be interpreted in terms of number of yrs(duration of 5,10,12 yrs??)
It can be. It is usually not used.
The derivative of the price wrt yield.
Using the duration as the # of years is really only applicable to zero coupon bonds.
steph96 Wrote: ------------------------------------------------------- > Using the duration as the # of years is really > only applicable to zero coupon bonds. don’t agree. duration sounds like a time because it is a time. It’s the weighted average time to cash flows.