Modified Duration in Semi-Annual periods converted to Annual

$ 14.00

4.6
(192)
In stock
Description

Why is it that to convert a Semi-Annual Modified Duration to an Annual one, we divide by 2 instead of multiplying by 2? Surely it doesn’t imply that the bond price will move more in half a year than in one full year when interest rates shift?

Macaulay Duration: Definition, Formula, Example, and How It Works

Convexity Formula Examples with Excel Template

Macaulay, Modified, and Effective Durations

Mastering Bond Duration with Weighted Average Life - FasterCapital

Modified Duration Explanation, Example with Excel Template

Compound Interest Calculator: Daily, Monthly, Quarterly, Annual (2024)

Coupon Payment Calculator

Duration - Definition, Finance, Types, Formulas

Effective Duration: Definition, Formula, Example

Duration - Definition, Finance, Types, Formulas

Modified Duration: Meaning, Formula, Examples