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Q » What is bond duration and why is it important?

Steven

06 Dec, 2025

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A » Bond duration is a measure of a bond's sensitivity to interest rate changes, expressed in years. It estimates how much a bond's price is likely to change when interest rates fluctuate. Understanding duration is crucial for investors as it helps assess interest rate risk and manage bond portfolio strategies, ensuring alignment with investment goals and risk tolerance. A higher duration indicates greater sensitivity to interest rate changes.

Michael

06 Dec, 2025

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A »Bond duration measures a bond's sensitivity to interest rate changes. It's the weighted average time until cash flows are received. Duration is important because it helps investors assess risk and potential returns, making informed decisions about their bond investments and managing their portfolio's overall interest rate risk.

David

06 Dec, 2025

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