durationvariance
Duration variance is a concept used in financial analysis, particularly in the context of fixed-income securities like bonds. It measures the difference between the actual duration of a bond and its expected duration at a specific point in time. Duration itself is a measure of a bond's price sensitivity to changes in interest rates. A higher duration indicates a greater sensitivity.
Duration variance arises when factors affecting the bond's cash flows or interest rate expectations deviate from
Understanding duration variance is crucial for portfolio managers and investors. It helps them assess the accuracy