Home > Term: duration
duration
The price sensitivity of a fixed-income security to an interest rate change of 1%. Duration is measured in years but should not be confused with the maturity of a bond. For all conventional bonds, duration is shorter than maturity. In the case of zero coupon bonds, however, duration is identical to maturity.
- Part of Speech: noun
- Industry/Domain: Banking
- Category: Investment banking
- Company: UBS
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- Stefan K
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