236 articles 4 sections last published 2026-09-09 independent · no sponsored placements

Measure

Duration

Definition

Approximate percentage price change of a bond or bond fund per one-percentage-point change in yield.

Formula

ΔP/P ≈ −D_mod × Δy

How to read it

A duration of 6 implies roughly a 6% price fall if yields rise by one point.

What it does not tell you

It is a first-order approximation, accurate only for small moves. For large yield changes the true price path curves away from the straight line — the missing term is convexity — and it assumes a parallel shift of the whole yield curve, which rarely happens.

Applied in 127 articles

127

Every figure computed with this measure on this site follows the conventions set out in the methodology. All measures →