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 ...
10-Year Bond Vs. 6-Month Bond. *A simultaneous change in interest rates across the bond yield curve. This hypothetical example is an approximation that ignores the impact of convexity; we assume the duration for the six-month bonds and 10-year bonds in this example to be 0.38 and 8.87, respectively.