This confusion is boiling my brain. Can anyone pls help
Modified duration measures the change in value of a bond due to change in bonds YTM? Correct
- if above is a correct then if i have a 5 year bond will its 5 year key rate duration equal its modified duration as well…? Since modified duration of 5 yr bind will also mean change in price of the bond due to change in 5 yr ytm … is that correct?
so will 5 year key rate duration for that bond and macaulay duration for a 5 year bond be same??