How Does Duration Work in Investing?

Calculating the duration of a bond is a fundamental concept in fixed-income investing. It communicates to a bond how it would respond to changes in interest rates and says a lot about price volatility in a bond. Knowing duration therefore helps an investor make much better portfolio decisions and find the right balance between risk and return.
This article would analyze how duration works in investing. It would explain the procedure, in calculation of such a duration, using Microsoft Excel where the different types have to be broken down. Characteristics in this regard will be looked at, and various strategies as well within bond investing shall be discussed. There will also be several examples for easier comprehension of this concept.