How are these 2 term different? Yield Volatility measures the volatility of bond price to its YTM. and Duration measures volatility for bond price in terms of percentage to the interest rate. For my understanding, isn’t the interest rate = to YTM ? So to me, this have the same measure. Hope you clear my misunderstanding. Thank you so much
No, it doesn’t.
Yield volatility is the volatility of the YTM itself, not the volatility of the bond’s price.
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Okay I get it now, Thani you sir !
My pleasure.