What is Duration?
Duration — A measure of how sensitive a bond’s price is to interest-rate changes — longer duration means bigger price swings.
In simple terms
Long-duration bonds fall more when rates rise.
Why Duration matters when you invest
Understanding duration helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Duration — frequently asked questions
What is Duration?
A measure of how sensitive a bond’s price is to interest-rate changes — longer duration means bigger price swings.
What does Duration mean in the stock market?
A measure of how sensitive a bond’s price is to interest-rate changes — longer duration means bigger price swings. Long-duration bonds fall more when rates rise.
Can you give an example of Duration?
Long-duration bonds fall more when rates rise.
Related terms
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