[MMB HDF01] Bond duration is different from bond maturity because maturity refers to the time remaining until the bond’s principal i...

Understanding bond duration is crucial for assessing interest rate risk, which is particularly relevant for banks and financial institutions managing large bond portfolios.

• •Bond duration is different from bond maturity.
• •Maturity refers to the time remaining until the bond’s principal is repaid.
• •Duration measures how sensitive a bond’s price is to changes in interest rates.
• •Risk flag: Misunderstanding bond metrics can lead to poor investment decisions
• •MCP aggregate validation score: -4.0 (2 symbols)