Bond duration

A bond's duration tells you roughly how much its price moves when rates move: a duration of 8 means about an 8% loss if yields rise one point. It's what surprised bondholders in 2022.

Semiannual coupons, like Treasuries. For a bond fund, use its stated duration as a guide: the price moves about that many percent per point.

This bond's numbers

If rates move

Duration's estimate against the bond's actual repriced value. The gap is convexity, which cushions losses and adds to gains.

Yield changeNew yieldActual price changeDuration estimateYour gain or loss

Maturity drives the risk