What Is Bond Duration?
Redacció de Financial World News · Explicació educativa · Com obtenim les rendibilitats
Duration is interest-rate sensitivity. Higher duration means a bigger percentage price change for a 1% yield move.
El briefing complet d'aquesta guia és en anglès. El títol, el resum i la navegació són en la vostra llengua perquè pugueu decidir si continueu llegint.
What Is Bond Duration — the mechanics
Think of duration as the volume knob on rate risk. A 1-year bill barely twitches; a 25-year duration gilt lurches. Convexity then says the lurch is not a perfect straight line.
Macaulay duration is time-weighted average receipt of cash, in years. Modified duration converts that to an approximate percentage price change per 1% yield change.
It is not ‘how long I must hold’. You can hold a 30-year for a week. You still sat on ~17-year duration for that week.
Our calculator shows Macaulay and modified for a vanilla coupon bond. Inflation-linkers and calls need other tools.
Official sources (International guides)
Primary statistics and prospectuses for International guides are published by the issuer, not by this newsroom. The labelled links at the end of this page go to those official sites (DMO, TreasuryDirect, Finanzagentur, MEF, AFT, SNB or ECB as relevant).
Our live board is a teaching overlay: dated prints, named sources, estimated ISIN lines. It is not a replacement for the issuer’s calendar.
Punts clau
- Macaulay duration is time-weighted average receipt of cash, in years.
- Prices and yields change. When this site quotes them, it dates them on the live board.
- Credit of a G7 government in its own currency is not the same as a stable screen price, and not the same as a bank deposit.
FAQ
- Is duration in years?
- Macaulay duration is in years. Modified duration is the % price change per 1% yield change. They are close but not identical.