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What is the practical value of calculating modified duration

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A 10-year, 10 percent annual coupon $1,000 bond trades at a yield to maturity of 8 percent. The bond has duration of 6.994 years. What is the modified duration of this bond?

What is the practical value of calculating modified duration? Does modified duration change the result of using the duration relationship to estimate price sensitivity?

Reference no: EM13317576

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What is the practical value of calculating modified duration : A 10-year, 10 percent annual coupon $1,000 bond trades at a yield to maturity of 8 percent. The bond has duration of 6.994 years. What is the modified duration of this bond?
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