DURATION FORTY YEARS LATER.

The article reviews and evaluates investment research on bond price fluctuations and risk assessment of interest rate shifts since 1973. A definition of duration as a means to measure price change characteristics outside of maturity is given, highlighting its quantification of time needed for a bond to reach present value return. Common uses of duration are cited, such as its use as a risk proxy and for profitability analysis. Criticisms are also given to previous interpretations due to restrictive condition assumptions and econometric flaws. Correctional factors are reincluded to provide a revised definition for a risk measure of general interest rate shifts.