Dollar Duration

Filed Under » , , ,
Dictionary Says

Definition of 'Dollar Duration'

Dollar duration measures the dollar change in a bond's value to a change in the market interest rate. The dollar duration is generally used by professional bond fund managers as a way of approximating the portfolio's interest rate risk. Dollar duration is one of several different measurements of bond duration.
Investopedia Says

Investopedia explains 'Dollar Duration'

Dollar duration is based on a linear approximation of how a bond's value will change in response to changes in interest rates. The actual relationship between a bond's value and interest rates is not linear. Therefore, dollar duration is an imperfect measure of interest rate sensitivity, and it will only provide an accurate calculation for small changes in interest rates.

Related Definitions

Search results for

'Dollar Duration'

  • CFA Level 1 Study Guide - Fixed Income Investments - Duration ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/duration.asp
    ... Risk; 14.18 Event Risk; 14.19 Pricing Bonds; 14.20 Duration; 14.21 International
    Bonds; 14.22 Government Bonds; 14.23 Mortgage-Backed ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Effective ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/effective-modified-macaulay-duration.asp
    ... Risk; 14.18 Event Risk; 14.19 Pricing Bonds; 14.20 Duration; 14.21 International
    Bonds; 14.22 Government Bonds; 14.23 Mortgage-Backed ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Price Value ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/price-value-basis-point.asp
    ... Risk; 14.18 Event Risk; 14.19 Pricing Bonds; 14.20 Duration; 14.21 International
    Bonds; 14.22 Government Bonds; 14.23 Mortgage-Backed ...

  • Why do companies issue 100-year bonds?

    http://www.investopedia.com/ask/answers/06/100yearbond.asp
    ... For example, multi-billion dollar companies such as the Walt Disney Company and ...
    institutional investors use 100-year bonds to lengthen the duration of their ...

  • An Introduction To Emerging Market Bonds

    http://www.investopedia.com/articles/bonds/09/emerging-market-bonds.asp
    ... growing countries began to issue bonds more frequently, both in US dollar denominations
    and ... a wide array of derivatives as well as short and long duration bonds ...

  • Investments With Low Interest Rate Risk And High Yields

    http://stocks.investopedia.com/stock-analysis/2011/Investments-With-Low-Interest-Rate-Risk-And-High-Yields-BKLN-MBB-ALD-EMLC-VIG0421.aspx
    ... by Ginnie Mae, the iShares Barclays MBS Bond (NYSE:MBB) has a duration of just ... As
    the dollar continues its decline, getting paid in variety of other stronger ...

  • Don't Bank On A Tax Refund - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0110/Dont-Bank-On-A-Tax-Refund.aspx
    ... a refund means you have lent the government your money for the duration of a year ...
    much-needed cash, but the instant payout comes at a cost.) A Dollar Today Vs. ...

  • Will China's Production Continue To Fan Speculation?

    http://stocks.investopedia.com/stock-analysis/2010/Will-Chinas-Industrial-Production-Continue-To-Fan-Speculation0128.aspx
    ... last week, many in the market continue to speculate as to the duration of the ... in
    forex (FX) assets, namely in the euro, Japanese yen and the Australian dollar. ...

  • A Review Of Past Recessions

    http://www.investopedia.com/articles/economics/08/past-recessions.asp
    ... The Eisenhower Recession: (August 1957 - April 1958): Duration: 8 months; Magnitude: ...
    The sharp world-wide recession and the strong US dollar contributed to a ...

  • 2011 In Review - The Best-Performing ETFs

    http://stocks.investopedia.com/stock-analysis/2011/2011-In-Review---The-Best-Performing-ETFs-ZROZ-BNO-GLD-IHE1216.aspx
    ... Close behind was the Vanguard Extended Duration Treasury Index ETF (ARCA:EDV) at ...
    basically looks to mimic the performance of investing equal dollar amounts in ...

Related Articles

Partner Links