Describe the concept of bond duration to a lay person

Interview Question: Describe the concept of bond duration to a lay person.

Answer:

Bond Duration Definition

Duration is a measurement of how long, in years, it takes for the price of a bond to be repaid by its internal cash flows. It is an important measure for investors to consider, as bonds with higher durations are riskier and have higher price volatility than bonds with lower durations.

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