Explain what bond duration is and why it is useful for risk managers. Create bond for which the price change after a 25 b.p. change in yield is well approximated using duration; create another bond for which the price change after a 25 b.p. change in yield is poorly approximated using duration. Which differences in the bonds causes this, do you think? Explain what bond duration is and why it is useful for risk managers. Create bond for which the price change after a 25 b.p. change in yield is well approximated using duration; create another bond for which the price change after a 25 b.p. change in yield is poorly approximated using duration. Which differences in the bonds causes this, do you think