Average Duration

Business, Legal & Accounting Glossary

Definition: Average Duration

Average Duration

Full Definition of Average Duration

A way of estimating the sensitivity of the value of a bond portfolio to changes in interest rates. Average duration for a portfolio is calculated as the average of the durations of the bonds in the portfolio, weighted according to the price of each bond.

Cite Term

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Page URL
Modern Language Association (MLA):
Average Duration. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
December 07, 2021 https://payrollheaven.com/define/average-duration/.
Chicago Manual of Style (CMS):
Average Duration. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/average-duration/ (accessed: December 07, 2021).
American Psychological Association (APA):
Average Duration. PayrollHeaven.com. Retrieved December 07, 2021
, from PayrollHeaven.com website: https://payrollheaven.com/define/average-duration/

Definition Sources

Definitions for Average Duration are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.