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Key Rate Duration

Definition
A way to measure the sensitivity of a security or a portfolio in relation to a change in yield of 1 percent (100 basis points) for a specific maturity. It is determined by changing the market rate for one maturity point on the yield curve while subsequently keeping all of the other variables the same. Key rate duration is also used to address the key rates that are the maturities of the United States Treasury spot rate curve.

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