Duration measures a bond's price sensitivity to interest rate changes. Higher duration means greater price volatility when rates change. It's expressed in years.
Modified Duration ≈ -ΔP/P / ΔY where ΔP = price change, P = price, ΔY = yield change
A bond with duration 7 years would fall approximately 7% in price if interest rates rise 1%. A 2-year duration bond would only fall about 2%.
AllInvestView calculates duration using its QuantLib-powered engine. See your bonds' duration on the bond report. Read our bond investing guide.