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Better: a 100 bp increase in prevailing interest rates...

edit to add:

Also, in the context of loans/notes/bonds, duration refers to sensitivity of the price of the instrument to a small change in interest rates.

Knowing the duration of the instrument is all you need, it is very odd to say 'by approximately 1% per year of duration' If the duration is 4 yrs, a 100bp increase in rates will result in a 4% decline in the price of the bond.




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