duration- also known as macaulay duration..
Nov 22 2013 04:51 PM
it is the measure of the time taken to recover the initial investment in the present value terms, it also refers to the pay back period of a bond to break even i.e the time taken for the bond to repay its own purchase price.
MODIFIED DURATION-it is the modified version of duration..it refers to the change in the value of the security to change in the int yield/int. rate...