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The Short Answer

What's the Difference Between 'Maturity' and 'Duration'?

Each measure plays a key role in helping bond investors evaluate interest-rate risk, but duration is the more complex of the two.

Question: I hear the terms "average maturity" and "average duration" used to describe bond funds. They sound similar, so what's the difference?

Answer: "Maturity" and "duration" may sound somewhat alike, and both measures are expressed in years. However, they mean very different things.