Bond duration

Duration is a measure of how long it will take to reach a bond's mid point in cash-flow terms.

Updated August 2018

"Duration" is a measure of risk related to bonds. It describes how sensitive a given bond is to movements in interest rates. Think of the relationship between bond prices and interest rates as being like a seesaw: when one side (interest rates, for example) goes up, the other (in this case, bond prices) goes down.

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