# Modified Duration

*Markets & Instruments — Finicade finance glossary*

The percentage a bond's price falls for a one-point rise in yield — duration turned into a direct price-sensitivity number. A modified duration of 6 means roughly a 6% loss if rates rise 1%.

**Related terms:** [Duration](https://finicade.com/glossary/duration), [Macaulay Duration](https://finicade.com/glossary/macaulay-duration), [DV01](https://finicade.com/glossary/dv01)

**Taught in:** Charter Climb — Duration & Convexity, Derived

Source: https://finicade.com/glossary/modified-duration