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 ...

such as lead time or takt time, for this metric. The mathematical formula is not difficult to understand. Subtract the time ...

And those prices fall as interest rates rise. But by how much? Modified duration is a formula that measures the sensitivity of the valuation change of a security to changes in interest rates.