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DURATION, in securities, is a measure in years of interest rate risk for a specific security or portfolio. Duration is the weighted average time to receive the present value of cash flows from a specific security or portfolio. When the duration is divided by the discount rate plus one, the resulting modified duration measures the sensitivity of a bond to changes in interest rates. Used by bond managers instead of maturity as it accounts for all principal and interest cash flows in addition to the final maturity payment. For example, the duration of a 10-year zero-coupon bond equals its maturity of 10, while the duration of a 10-year 7.5% coupon bond is less than seven years.
OVERHAUL is to rebuild, make repairs or adjustments to, e.g. an overhaul expense would be the expenditures incurred in making the subject item(s) acceptable once again.
FULLY DEPRECIATED is when an asset has already been charged with the maximum amount of depreciation allowed by the taxing authority for accounting purposes.
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