Modified duration is used to estimate the percentage change in a bond's price resulting from a change in the market rate of interest.

Name: Modified duration is used to estimate the percentage change in a bond's price resulting from a change in the market rate of interest.
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Modified duration measures the sensitivity of a bond's price to changes in interest rates, estimating the percentage change in price for a 1% change in yield.

Modified Duration Is Used to Estimate the Percentage Change in a Bond's