The method presented here to evaluate and regulate the risk exposure of default-free bonds generalizes the traditional duration concept by taking nonparallel changes in the term structure of interest rates into account. The article shows how to immunize a default-free bond by hedging with two standard hedging instruments (a combination hedge) and how to replicate a diversified bond portfolio by using a few standard hedging instruments. This standard hedging instrument representation can provide comprehensive information about the risk structure of the portfolio, and trading the standard hedging instruments can help fine-tune a position.