Effective Duration definition

Effective Duration means, with respect to any mortgage-backed security, an estimate, expressed as a whole number or a fraction thereof, of the percentage change in the price of such mortgage-backed security for a 100 basis point change in the applicable rate for such mortgage-backed security, further adjusted by a prepayment model, which estimates mortgage-backed security price changes as a function of prepayment rate movements.
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Effective Duration means the time left on a contract.
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Effective Duration. The approximate percentage change in a security’s price that will result from a 100-basis-point change in its yield. “Employer” [ ]
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Examples of Effective Duration in a sentence

  • In the event the Target Effective Duration is changed by greater than or equal to 0.5 years and, as a result of such change, the effective duration of the Trust Portfolio exceeds the Permissible Duration Range, the Grantor shall have ninety (90) calendar days following the date of such change to bring the effective duration of the Trust Portfolio within the Permissible Duration Range.

  • The effective duration of the Trust Portfolio will be between 2.0 and –2.0 years (“Permissible Duration Range”) of the Target Effective Duration.

  • Portfolio Effective Duration +/-20% The portfolio’s effective duration will be within a +/-20% range relative to the portfolio’s benchmark.

  • Effective Duration: Duration of a callable/puttable debt approximated using modified duration of the debt, which considers change in expected cashflows with change in interest rates.

Related to Effective Duration

  • Effective age means the difference between the estimated useful life and remaining useful life.

  • Effective dose equivalent (HE), means the sum of the products of the dose equivalent to each organ or tissue (HT), and the weighting factor (wT,) applicable to each of the body organs or tissues that are irradiated.

  • Effective Period means the period beginning on the Change of Control Date and ending 24 months after the date of the related Change of Control.

  • Effective TBD means that the date is to be determined by further Commission action. A date listed as "anticipated effective" may be subject to change. An Advice Letter Supplement is not a new filing, and there is no protest period unless indicated.

  • Effective Amount means with respect to any Advances on any date, the aggregate outstanding principal amount thereof after giving effect to any borrowing and prepayments or repayments thereof occurring on such date.