.. The duration off a bond measures the sensitivity of the Ibond's full price to changes in the bond's yield to maturity otto changes in benchmark interest rates: . For bond's with embedded options; the only appropriate duration measure is the, Eury& suration measure KR8WR as effective Jor option-adjusted) duration. effective (hr ontion.adristedY duration L Effective duration indicates the sensitivity of the bond's price to a 100 bps parallel shift of the benchmark yield curve assuming no change in the bond's credit spread. EffD = (PV_) - (PV+) 2 x (4Curve) x (PVo)