December 2025 ACCA Exam Results

Post comments & Instant poll

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March 2026 exams.
Get your discount code >>

Modified Duration rate

This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
May 30, 2019 at 3:58 pm #517950
aamir2111
Participant
- Topics: 123
- Replies: 85
Dear Tutor,
As per lec notes, “The Modified Duration measures the sensitivity of the market value of a bond to changes in interest rate”. What are these interest rate? the future investor’s required rate of interest, isn’t it?
May 30, 2019 at 4:18 pm #517957
John Moffat
Keymaster
- Topics: 57
- Replies: 54812
Correct – the investors required rate of return (which is, of course, dependent on what happens to general interest rates).
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.