What is Duration (bond)?
The weighted average, by their present value, of the time until all cash receipts on a bond (coupons and face value) arrive, measured in years (Macaulay duration). For a coupon bond, duration is shorter than the maturity, because part of the money arrives earlier; for a zero-coupon bond it equals the maturity. Practical meaning: the longer the duration, the more strongly the bond's price changes when the interest rate changes. A longer maturity increases duration, while a high coupon and a high yield reduce it.