*DURATION Rules and Examples

While Effective Duration is a more complete measure of a bond's sensitivity to interest rate movements versus the Macauley or Modified Duration

Duration measures the time it takes to recover half the present value of all future cash flows from the bond The discount rate for calculating the present

duration Determinants of Duration · Duration is inversely related to the bond's coupon rate · Duration is inversely related to the bond's yield to maturity

duration FOR THE DURATION definition: 1 for as long as something lasts: 2 for as long as something lasts: Learn more