What's the Difference Between 'Maturity' and 'Duration'? ;..
With interest rates at historic lows, now is a good time for bond investors to pay particular attention to the roles that both maturity and duration play with regard to interest-rate sensitivity. But these measures are far from the only considerations when investing in bonds. Others include credit quality and bond type, not to mention fund management and fees for those investing in bond funds.
Have a personal finance question you'd like answered? Send it to TheShortAnswer@morningstar.com.
With interest rates at historic lows, now is a good time for bond investors to pay particular attention to the roles that both maturity and duration play with regard to interest-rate sensitivity. But these measures are far from the only considerations when investing in bonds. Others include credit quality and bond type, not to mention fund management and fees for those investing in bond funds.
ReplyDeleteHave a personal finance question you'd like answered? Send it to TheShortAnswer@morningstar.com.