In the world of investments, bonds offer a reliable way to generate income and preserve capital. But as with any financial instrument, understanding the nuances is key to making informed decisions. One important concept in the realm of bonds is “duration.” Duration serves as a crucial metric for gauging a bond’s sensitivity to interest rate changes and managing risk. In this article, we delve into the concept of bond duration and its significance in the world of fixed-income investments. In simple terms, bond duration is a measure of the bond’s sensitivity to changes in interest rates. It provides investors with an estimate of how much the bond’s price is expected to change in response to a one percent change in interest rates. Duration is a vital tool for assessing the potential impact of interest rate fluctuations on a bond’s value. Several factors influence a bond’s duration: Maturity: Generally, the longer the time until a bond matures, the higher its duration. This is because longer-term bonds have more future cash flows that can be affected by interest rate changes. Coupon Rate: Bonds with lower coupon rates