An accounting term referring to a calculated measure used to compare bonds of varying durations and repayment schedules by averaging the periods for which funds are available, weighted by the amounts available in each period.
Duration is a measure often used in fixed-income investing to assess the sensitivity of a bond's price to changes in interest rates by calculating the average life of the discounted values of the cash flows associated with a bond.
Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.