Duration measures the average amount of time needed for an investor to recover his or her original cash outlay used to buy the security.

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Duration is a measure used in fixed income to assess the sensitivity of a bond's price to changes in interest rates, and it also represents the weighted average time it takes for an investor to be repaid the bond's cash flows, which can be thought of as the time to recover the initial investment.

Duration Measures the Average Amount of Time Needed for an Investor