In the context of bonds, what does Money Duration express?

Money Duration expresses the dollar change in the price of a bond in response to changes in interest rates. Specifically, it quantifies how much the price of a bond will change for a one basis point (0.01%) change in yield. Money duration is a valuable metric for fixed income investors as it allows them to measure the sensitivity of a bond's price to interest rate fluctuations in monetary terms.

The reason this understanding is crucial is that it provides a direct link between the bond's price movements and changes in interest rates, enabling investors to assess the bond's risk in a more tangible way. Consequently, when evaluating bonds, knowing the money duration helps in making informed decisions about interest rate risk and potential price changes.