DEFINITION of 'Duration'
A measure of the sensitivity of the price (the value of principal) of a fixedincome investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices.
INVESTOPEDIA EXPLAINS 'Duration'
The duration number is a complicated calculation involving present value, yield, coupon, final maturity and call features. Fortunately for investors, this indicator is a standard data point provided in the presentation of comprehensive bond and bond mutual fund information. The bigger the duration number, the greater the interestrate risk or reward for bond prices.
It is a common misconception among nonprofessional investors that bonds and bond funds are risk free. They are not. Investors need to be aware of two main risks that can affect a bond's investment value: credit risk (default) and interest rate risk (rate fluctuations). The duration indicator addresses the latter issue.

Accrual Bond
A bond that does not pay periodic interest payments. Instead, ... 
Empirical Duration
The calculation of a bond's duration based on historical data. ... 
Effective Duration
A duration calculation for bonds with embedded options. Effective ... 
Basis Point  BPS
A unit that is equal to 1/100th of 1%, and is used to denote ... 
Macaulay Duration
The weighted average term to maturity of the cash flows from ... 
ZeroCoupon Bond
A debt security that doesn't pay interest (a coupon) but is traded ...

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Options & Futures
Immunization Inoculates Against Interest Rate Risk
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Fundamental Analysis
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Mutual Funds & ETFs
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Read about the differences between money market accounts and savings accounts, and see why a depositor would elect a money market over a savings account. 
Mutual Funds & ETFs
What determines the interest rate in my money market account?
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Bonds & Fixed Income
What is the difference between yield to maturity and the yield to call?
Determining various the various yields that callable bonds can provide investors is an important factor in the bond purchasing process. 
Investing
What's a T Bond?
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Investing
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Fundamental Analysis
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