Your question is Fixed-Income Duration. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
Explain the concept of duration and why it matters to a fixed-income trader.
Cover duration as a measure of a bond's sensitivity to changes in yield, distinguish Macaulay from modified duration, and explain the direction and approximate size of a bond-price move. Use the illustrative bond data below to quantify a 10-basis-point yield increase, including convexity, and discuss how a trader uses duration to hedge and size risk.
