<page_title> Bond duration </page_title> <section_title> Risk – duration as interest rate sensitivity </section_title> <table> <cell> 5% semi-annual annuity <col_header> Description </col_header> </cell> <cell> 4.72% <col_header> Modified Duration (% per 100bp yld ch) </col_header> </cell> <cell> zero-coupon bond <col_header> Description </col_header> </cell> <cell> 9.76% <col_header> Modified Duration (% per 100bp yld ch) </col_header> </cell> </table>
The annuity has the lowest sensitivity, roughly half that of the zero-coupon bond, with a modified duration of 4.72%.