Discuss on Bond Duration and Bond Volatility with Example. A bond will face interest rate risk if the holding period differs from duration. For any bond, there is a holding period at which the effect of reinvestment risk and price risk balances each other. The lose of reinvestment of interest can be compensated by a capital gain on the sale of the bond and vice versa. For this … [Read more...] about Discuss on Bond Duration and Bond Volatility with Example