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 ...
Duration Just Part of the Story. In theory a bond fund with a negative average duration should appreciate in value if interest rates rise. But fixed-income investors seeking protection from a rise in rates shouldn't consider duration alone in choosing a fund. Knowing what's in the portfolio is just as important.