For zero coupon bonds, the duration is the years to maturity. For investment purposes, if you expect interest rates to rise, reduce the duration of the portfolio. If one expects interest rates to fall, increase the duration of the portfolio. It is similar to varying the maturities of a bond but with the added condition of yield. Probably the issue for concern is if you had to sell the bonds prior to maturity.
Stocks have relatively liquid markets and a sale can usually take place quickly.
But bonds do not have such a liquid market and a few bonds will demand a potentially severe discount. Last Tuesday, someone bought one or more Los Angeles County pension bonds due in June 2007. As a result, the first investor will get a yield to maturity of 5.79 percent while the second will get a yield of 6.71 percent. Because bonds and bond pricing are far from the liquid, open and market of most equities. Unlike the stock market, where investors can scarcely avoid learning the latest prices, the municipal bond arena has long been cloaked in such mystery that just to ask about the detailed terms of an issue can be akin to breaking a fraternal taboo.