What type of bond is typically characterized by a duration of 5 to 40 years?

Bonds characterized by a duration of 5 to 40 years are classified as long-term bonds. Long-term bonds are typically issued for a longer period, allowing issuers to secure financing for extensive projects or long-term investments. These bonds usually yield a higher interest rate compared to short-term bonds due to the increased risk associated with the longer time frame, including interest rate risk and inflation risk.

Additionally, long-term bonds provide stability for investors seeking to lock in returns over a longer horizon, making them a vital component of many investment portfolios. In contrast, short-term bonds have durations that are usually under 5 years, convertible bonds often allow for the conversion into equity and do not specifically denote a length, while municipal bonds can be long-term but vary significantly in duration and type. Therefore, the categorization of a bond's duration as long-term accurately aligns with the range described in the question.