Modified duration shows bond price sensitivity to yield changes; a 1.859% price change per 1% yield shift. Macauley duration measures average time to receive bond cash flows, key for calculating ...

When professional investors discuss the credit market, a term that often arises is duration, which is used to measure the sensitivity of a bond’s trading price to changes in interest rates ...

Key rate duration measures a bond's sensitivity to shifts in interest rates at specific maturity points along the yield curve. Unlike traditional duration metrics, which assume parallel interest rate ...

Here's how to use bond duration to understand how interest rates will affect bonds and bond funds. Bond duration describes the average time period before all the cash flows are received from a bond.

Bonds are popular fixed income investment instruments and are often regarded as bearing relatively low-risk burdens. While bonds are less volatile than other investments, they are not risk-free, ...

Interest-rate sensitivity, credit risk, and exposure to the yield curve are three of the biggest factors that have an impact on a bond's price. As a measure of interest-rate sensitivity, duration ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Cierra Murry is an expert in banking, credit cards, investing, loans, mortgages ...

Bond prices are sensitive to interest rate changes, and bond duration is a measure of just how sensitive. For instance, in Exhibit 1.1 (shown in my last article), an increase in interest rates for the ...

The 2008 financial crisis and the resulting market shocks had a number of surprising consequences. One that was particularly important to bond investors was the degree to which diversified bond funds ...

In many ways, bonds are more complex than stocks. Investors use a host of different metrics to evaluate bond investments, and one involves a concept known as duration, which helps an investor ...