Duration is a concept that is useful in assessing a bond's ; price volatility.
Bond duration is a way of measuring how much bond prices are likely to change if and when interest rates move. In more technical terms, bond duration is measurement of interest rate risk. Understanding bond duration can help investors determine how bonds fit in to a broader investment portfolio.
The duration of a bond is primarily affected by its coupon rate, yield, and remaining time to maturity. The duration of a bond will be higher the lower its coupon. Duration will be higher the lower its yield. Duration will also be higher the longer its maturity.
Thus, we can conclude that Duration is a concept that is useful in assessing a bond's price volatility.
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