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Duration Measures

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Can you explain what duration measures? Why is duration important to a bond investor?

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This solution of 226 words defines duration measures and applies it to bond duration with examples. References used are included.

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Can you explain duration measures? Why is duration important to a bond investor?

As per Investopedia.com, "The term duration has a special meaning in the context of bonds. It is a measurement of how long, in years, it takes for the price of a bond to be repaid by its internal cash flows. "

As per financiallearn.com, "The bond duration refers to the weighted average of ...

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