where 
calculating key rate durationas an example assume that a bond is originally priced at 1 000 and with a 1 increase in yield would be priced at 970 and with a 1 decrease in yield would be priced at 1 040 based on the formula above the key rate duration for this bond would be krd 1 0 4 0 9 7 0 2 1 1 0 0 0 7 0 2 0 3 5 where krd key rate duration begin aligned text krd left 1 040 970 right left 2 times1 times 1 000 right 70 20 3 5 textbf where text krd key rate duration end aligned krd 1 040 970 2 1 1 000 70 20 3 5where krd key rate duration 