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 ...
which measures a bond's sensitivity to interest rate changes. Expressed in years, the duration formula includes the bond's coupon, time to maturity and yield paid through the term. Some advisors ...
Modified duration is an unfamiliar term for many investors, but the underlying idea probably isn’t. The valuation of securities, particularly bonds, changes as interest rates change. Modified ...
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 ...