What is Key Rate Duration ?

[Ankit Sharma]

Only know that it is usefull for Bond portfolio where there is a non-parallel shifts in YTM, Other than that dont know anything

 

[S2000magician]

I wrote an article on key rate duration that may be of some help: http://financialexamhelp123.com/key-rate-duration/
Note, however, that this is really a Level II topic. I wouldn’t worry about it at Level I.

 

[Ankit Sharma]

But it is given in LOS 56.d

 

[S2000magician]

In that case … read the article.

 

[Ankit Sharma]

Thank you !

 

[S2000magician]

My pleasure.