Bond DurationBond Duration: Estimates the percentage change in a bond’s price for every 1% shift in interest rates. For example, a bond with a 3-year duration will gain or lose roughly ±3% of its value if rates fall or rise by 1%. More: Estimates the percentage change in a bond’s price for every 1% shift in interest rates. For example, a bond with a 3-year durationBond Duration: Estimates the percentage change in a bond’s price for every 1% shift in interest rates. For example, a bond with a 3-year duration will gain or lose roughly ±3% of its value if rates fall or rise by 1%. More will gain or lose roughly ±3% of its value if rates fall or rise by 1%.
