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BTC+2.5%
ETH+1.8%
DEMO
SPY+0.8%
QQQ+1.2%
DIA-0.3%
SYSTEM: OFFLINEQILTRACK: V4.0
BTC+2.5%
ETH+1.8%
DEMO
SPY+0.8%
QQQ+1.2%
DIA-0.3%
SYSTEM: OFFLINEQILTRACK: V4.0
BTC+2.5%
ETH+1.8%
DEMO

Key Rate Duration

Sensitivity of a bond's price to changes at specific points on the yield curve.

fixed incomerisk management

Definition

Key rate duration measures a bond's price sensitivity to yield changes at specific maturity points (key rates) on the curve rather than parallel shifts. It helps understand how non-parallel yield curve movements affect portfolio value. Bonds have different key rate exposures based on their cash flow timing.

Example

A bond has high 10-year key rate duration but low 2-year. It's more sensitive to 10-year rate changes than short-term changes.

FAQ

What is Key Rate Duration?

Sensitivity of a bond's price to changes at specific points on the yield curve.

Why is Key Rate Duration important?

Key Rate Duration helps investors evaluate fixed income and make more informed decisions.

Related Terms

This content is for informational purposes only and is not investment advice.

Key Rate Duration - Definition & Meaning | Financial Glossary