justin88

Correction to my previous message.

In Reading 28, duration is often used as a unit time to match the horizon of the liability in an immunization. In Level 1 & 2, we learned that duration is a sensitivity of price change given a small change IN YIELD.

Why the duration can be regarded as a unit of time ? On the other hand, duration will change when only the yield changes at any point of time (i.e., even time is not passed over), then how can duration be regarded as a unit time without time passed over ?