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.
Advanced Bond Concepts: Duration. The term duration has a special meaning in the context of bonds. It is a measurement of how long, in years, it takes for the price of a bond to be repaid by its internal cash flows. It is an important measure for investors to consider, as bonds with higher durations carry more risk and have higher price volatility than bonds with lower durations.
1 Determining the bond yield is a matter of determining the 2  â¦. Bond Duration: What Every Bond Fund Investor Needs To Know If you have money invested in fixed income bond funds, it essential to understand the concept of bond duration.3  What is bond duration, why is it so important and why could aâ¦.hare to: 1  Ahead of the Curve: Bond Yields Explained A bond yield is the percentage return an investor can expect to get from a bond issue in a specific period of time.