Question: b) Why modified duration is a better measure than maturity in the calculation of the bond's sensitivity to changes in interest rates? What is

b) Why modified duration is a better measure than maturity in the

b) Why modified duration is a better measure than maturity in the calculation of the bond's sensitivity to changes in interest rates? What is convexity and how modified duration and convexity are used to approximate the bond's percentage change in price, given a change in interest rates?

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