The duration calculated using the approximate duration formula for a bond with an embedded option , reflecting the expected change in the cash flow caused by the option . Measures the responsiveness of a bond's price taking into account that expected cash flows will change as interest rates change due to the embedded option .
EFFECTIVE DURATION
Meaning of EFFECTIVE DURATION in English
Campbell R. Harvey. Hypertextual finance English glossary. Английский словарь гипертекстовых финансов. 2012