Jul 16, 2025 · Duration measures how long it takes, in years, for an investor to be repaid a bond’s price through its total cash flows. It is also used as a tool to determine the change in a bond's …

Learn about duration and how investors and investment managers use it to build portfolios and manage risk.

Bond duration is a fundamental concept in fixed-income investing. It measures the sensitivity of a bond’s price to changes in interest rates by calculating the weighted average time it takes to …

Duration is defined as the average time it takes to receive all the cash flows of a bond, weighted by the present value of each of the cash flows. Essentially, it is the payment-weighted point in …

Duration is one of the fundamental characteristics of a fixed income security (e.g., a bond), alongside maturity, yield, coupon, and call features. It is the most commonly used tool in the …

Duration (finance) is a measure of how the price of a fixed-income instrument responds to a change in interest rates. It is used to compare rate risk across bonds and to construct hedges, …

Duration differs from maturity in that it considers a security’s interest payments in addition to the amount of time until the security reaches maturity, and also takes into account certain maturity …

Jun 20, 2024 · Duration is defined as the change in value of a bond for a 1% change in interest rates. For example, if interest rates decrease by 1% and you own a 10-year bond with a …

DURATION definition: 1. the length of time that something lasts: 2. for as long as something lasts: 3. the length of…. Learn more.

Duration is a measure of a bond's or fixed income security's price sensitivity to changes in interest rates. It quantifies the approximate percentage change in a bond's price for a 1% change in …