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Introduction to Bond Duration

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Duration (not the same as maturity) is the subject of this tutorial. It is both an investment concept and a tool to help investors.

What you will learn

  • Bond Values, Rates, and Maturity
  • Bond Duration Defined
  • Properties of Bond Duration
  • Duration and Bond Interest Rate Risk

What do you know?

Introduction to Bond Duration

When you read reports on bonds and bond mutual funds, you will likely come across two apparently similar terms—bond maturity and bond duration. Though related, they refer to two different concepts. As an educated investor, you need to understand these concepts in order to make wise investment decisions regarding bonds and your financial goals.