Written, signed, unconditional, and unsecured promise by one party (the maker or promisor) to another (the payee or promisee) that commits the maker to pay a specified sum on demand, or on a fixed or a determinable date. Promissory notes (such as bank or currency notes) are negotiable instruments.
The Basics Of Bond Duration. Duration tells investors the length of time it will take a bond's cash flows to repay the investor the price he or she paid for the bond. A bond's duration is stated as a number of years and ...
The low bond risk premium. suggests investors should approach duration risk more cautiously in the year. ahead. This means favoring shorter duration funds, sectors with limited. correlation to Treasury returns (e.g., high-yield credit) and products with the. flexibility to actively manage interest rate risk.