Key Rate Duration
Holding all other maturities constant, this measures the sensitivity of a security or value of a portfolio to a 1% change in yield for a given maturity.
The calculation is as follows:
Investopedia Commentary
There are 11 maturities along the Treasury spot rate curve, and a key rate duration is calculated for each. The sum of the key rate durations along a portfolio yield curve is equal to the effective duration of the portfolio.
Related Links
Advanced Bond Concepts
See also: Duration, Effective Duration, Interest Rate, Macaulay Duration, Modified Duration, Spot Rate, Yield, Yield Curve, Yield to Maturity