Definition of «bond duration»

Bond duration refers to the length of time it takes to receive the total present value of a bond's cash flows, including both regular interest payments and the repayment of the principal. It helps investors understand how sensitive a bond's price is to changes in interest rates.

Sentences with «bond duration»

As a general rule - of - thumb, for every percent increase in interest rates, there will be a 1 % decrease in the bond price for each year of bond duration. (mindfullyinvesting.com)
Note also that the average bond duration for these fixed income funds will influence their rates of portfolio turnover. (bondmarketindexfund.com)
Note also that the average bond duration for these bond funds will influence their rates of portfolio turnover. (bondmarketindexfund.com)
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