what is duration 
bonds and bond portfolios will rise or fall in value as interest rates change the sensitivity to changes in the interest rate environment is called duration the use of the term duration in this context can be confusing to new bond investors because it does not refer to the length of time the bond has before maturity instead duration describes how much a bond s price will rise or fall with a change in interest rates the bottom linebonds are issued by companies and governments to finance projects and fund operations a bond is considered a fixed income instrument since bonds traditionally pay a fixed interest rate to debtholders investors can purchase corporate bonds through financial institutions or online brokers or buy government bonds through the u s treasury website 