Bond Duration
InvestingA measure of a bond's sensitivity to interest rate changes — longer duration means greater price fluctuation.
Example
Example: Consider an investor building a $100,000 portfolio. Bond Duration — a measure of a bond's sensitivity to interest rate changes — longer duration means — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.