While the formula is somewhat flawed, basically, a bond with a duration of 7.5 means that if the yield of the bond moves by _______ basis point(s), the price will move by _______%.

100 bps change in rates will move the price by approx 7.5%

Perfectly right JJ.

You can see that this is true by checking out: http://www.ronakke.com/YTM-Duration-Conv...

While the formula is somewhat flawed, basically, a bond with a duration of 7.5 means that if the yield of the bond moves by _______ basis point(s), the price will move by _______%.