Quick Finance Tip – Yield Duration, Curve Duration, and Modified Duration

​Yield Duration is the sensitivity of the bond price with respect to the bond’s own Yield to Maturity (YTM). Curve Duration is the sensitivity of the bond price with respect to a benchmark yield curve. Another way to refer to Curve Duration is Effective Duration. Modified duration provides an estimate of the percentage change for a bond, given a change in its Yield to Maturity (YTM).