Duration
131Perception of duration — Human perception of duration is subjective and variable. For example, time may appear to slow or drag as one eagerly anticipates the arrival of a specific event. A school day may seem endless for a student who is waiting for the bell indicating… …
132Key Rate Duration — Holding all other maturities constant, this measures the sensitivity of a security or the value of a portfolio to a 1% change in yield for a given maturity. The calculation is as follows: Where: P = Security s price after a 1% decrease in yield… …
