Question: (a) Explain what a 10-year key rate duration of 0.35 means? (b) How is a key rate duration computed?

(a) Explain what a 10-year key rate duration of 0.35 means?
(b) How is a key rate duration computed?

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a The key rate duration is an approach to measure the exposure of a bond or bond portfolio to shifts in the yield curve The basic principle of key rat... View full answer

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