Effective duration estimates how much the price of a bond with embedded options will change when interest rates shift, focusing on duration as a tool for managing interest rate risk. Effective ...

First of all, you shouldn’t confuse the financial term “duration” with a timeframe. In the bond world, duration has everything to do with interest rates. Many investors already know that bonds and ...

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 ...