Question
What is bond duration?
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8th May 2010 by Gary B
Bond duration refers to how long it takes for the price of a bond to be paid back from internal cash flow. A higher duration bond is more risky, and the price can be much more volatile than lower duration bonds. It can get highly complex, but the most important thing for an investor to understand is that there is such a thing and will have an impact on the investment.
Bond duration refers to how long it takes for the price of a bond to be paid back from internal cash flow. A higher duration bond is more risky, and the price can be much more volatile than lower duration bonds. It can get highly complex, but the most important thing for an investor to understand is that there is such a thing and will have an impact on the investment.
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1st Nov 2009 In Bonds
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Subjects: bond,
bond duration,