Bond Duration and Interest-Rate Sensitivity (Rule of Thumb)
Using FINRA's rule of thumb: the approximate inverse price change of bonds of different durations for a 1 percentage-point move in interest rates.
| Duration (years) | Rates rise 1 pp | Rates fall 1 pp |
|---|---|---|
| 2 | about −2% | about +2% |
| 5 | about −5% | about +5% |
| 10 | about −10% | about +10% |
| 20 | about −20% | about +20% |
| 30 | about −30% | about +30% |
Method & sources
Per FINRA: a bond's approximate price change ≈ duration × the change in rates, in the opposite direction. Figures are approximations excluding convexity; for large rate moves the actual change deviates from this linear estimate.
Source: https://www.finra.org/investors/insights/bonds-interest-rate-changes-duration
Retrieved: 2026-09
FAQ
- What does "Bond Duration and Interest-Rate Sensitivity (Rule of Thumb)" cover?
- It covers 2, 5, 10, 20, 30, compared across: Duration (years), Rates rise 1 pp, Rates fall 1 pp.
- What are the sources and methodology?
- Per FINRA: a bond's approximate price change ≈ duration × the change in rates, in the opposite direction.
- When was this data last updated?
- The data was retrieved/updated on 2026-09.