Key Rate Duration

For parallel shifts in the yield curve, the sum of all the key rate durations will _most likely_ be identical to:

Correct. Effective duration is an example of a statistic of curve duration and will be equal to the sum of each key rate duration along the term structure. This is true because key rate duration captures any embedded options in the bond, just as effective duration does.

Incorrect. Modified duration is a measure of bond price sensitivity to a change in the bond's yield to maturity. Modified duration does not reflect changes to key rates along the yield curve, so it will not equal the sum of the key rate durations.

Incorrect. Macaulay duration simply measures the weighted average time to maturity of a bond and will not be equal to the sum of the key rate durations under any circumstances.

effective duration.

modified duration.

Macaulay duration.