Scribd Logo
Upload

Welcome to Scribd!

  • 5 views

    What Is Duration

    Uploaded by

    jamesforfunonly3

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    What Is Duration

    Uploaded by

    jamesforfunonly3
    5 views2 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    5 views2 pages

    What Is Duration

    Uploaded by

    jamesforfunonly3

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    What Is Duration?

    Bonds and bond portfolios will rise or fall in value as interest rates change.
    The sensitivity to changes in the interest rate environment is called “duration.”
    The use of the term duration in this context can be confusing to new bond
    investors because it does not refer to the length of time the bond has before
    maturity. Instead, duration describes how much a bond’s price will rise or fall
    with a change in interest rates.

    The Bottom Line


    Bonds are issued by companies and governments to finance projects and
    fund operations. A bond is considered a fixed-income instrument since bonds
    traditionally pay a fixed interest rate to debtholders. Investors can purchase
    corporate bonds through financial institutions or online brokers or buy
    government bonds through the U.S. Treasury website.

    SPONSORED
    Trade on the Go. Anywhere, Anytime
    One of the world's largest crypto-asset exchanges is ready for you.
    Enjoy competitive fees and dedicated customer support while trading
    securely. You'll also have access to Binance tools that make it easier than
    ever to view your trade history, manage auto-investments, view price charts,
    and make conversions with zero fees. Make an account for free and join
    millions of traders and investors on the global crypto market.

    What Is Duration?
    Bonds and bond portfolios will rise or fall in value as interest rates change.
    The sensitivity to changes in the interest rate environment is called “duration.”
    The use of the term duration in this context can be confusing to new bond
    investors because it does not refer to the length of time the bond has before
    maturity. Instead, duration describes how much a bond’s price will rise or fall
    with a change in interest rates.

    The Bottom Line


    Bonds are issued by companies and governments to finance projects and
    fund operations. A bond is considered a fixed-income instrument since bonds
    traditionally pay a fixed interest rate to debtholders. Investors can purchase
    corporate bonds through financial institutions or online brokers or buy
    government bonds through the U.S. Treasury website.

    SPONSORED
    Trade on the Go. Anywhere, Anytime
    One of the world's largest crypto-asset exchanges is ready for you.
    Enjoy competitive fees and dedicated customer support while trading
    securely. You'll also have access to Binance tools that make it easier than
    ever to view your trade history, manage auto-investments, view price charts,
    and make conversions with zero fees. Make an account for free and join
    millions of traders and investors on the global crypto market.

    You might also like