MSDURATION
MSDURATION is a term that appears in financial analysis and pricing tools, but it is not a universally standardized concept in major reference works. Its exact meaning can vary by software vendor, documentation, or context. In many cases, MSDURATION is used informally to refer to duration measures used to gauge a bond’s sensitivity to changes in interest rates. When encountered in documentation, it is important to check the surrounding definitions to determine whether it denotes Macauley duration or modified duration.
If MSDURATION is intended to denote Modified Duration, it represents the price sensitivity of a bond to
Price-change approximation: ΔP ≈ -D_Mod * Δy for small yield changes. This relationship links duration to interest-rate risk
Relation to other terms: Excel and other tools commonly provide DURATION and MDURATION functions for bonds;