Understanding duration can help investors decide which bonds are right for them. First of all, you shouldn’t confuse the financial term “duration” with a timeframe. In the bond world ...

How to Calculate Key Rate Duration Key rate duration is calculated by applying small shifts to individual points on the yield curve and measuring the resulting change in a bond's price.

Modified duration measures price sensitivity to interest rate changes. The calculation for modified duration is relatively straightforward. Modified duration is important for investors in ...

Still, more than once I've had clients balk at the idea of investing in bonds, offering the explanation, "They don't return as much as stocks." That's where it becomes the financial advisor's job ...