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Investor Education SeriesInvestor AlertDurationWhat an Interest Rate Hike Could Do to Your Bond Portfolio If you own bonds or have money in a bond fund, there is a number you should know. It is called
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The duration of an interest rate refers to how long the interest rate will be in effect for a loan or investment.
Financial institutions and individuals who offer loans or investment products are required to disclose the duration of an interest rate.
To fill out the duration of an interest rate, you need to specify the length of time the interest rate will be applicable.
The purpose of specifying the duration of an interest rate is to provide transparency and clarity to borrowers or investors regarding the terms of the loan or investment.
The information that must be reported on the duration of an interest rate includes the start date, end date, and any applicable fees or penalties.
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