Duration is also expressed in years and is an average of the payments a bondholder receives from a bond. But, the duration of any bond that pays coupon payments must be lower than the maturity date because the investor gets back some of the money before the maturity date. When determining the interest-rate risk of a bond, duration is much more appropriate than maturity. Duration is also used to measure the interest rate risk of all the bonds in a bond mutual fund. Viewpoints that contain inappropriate or otherwise objectionable content will not be posted.
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