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 ...
spread duration. A way of measuring how sensitive a bond price is based on a change in basis points of 100 points. This is typically correlated with the option adjusted spread of Treasury securities.