Answer:
Step 1 of 3
Duration of a bond refers to the time period till the end of which investor can recover his investment in bond. For normally traded bonds, duration is always less than its maturity, whereas for Zero-Coupon bond duration is equal to its maturity.
Duration  of a bond can be calculated using the following formula:

Here,
“” is the change in price.
“” is the initial price.
“” is the yield to maturity.
“” is the change in yield.
“” is the duration of a bond.
