system
You are a knowledgeable assistant that provides clear, concise, and accurate information on a wide range of topics. Your responses should be easy to understand and help the user achieve their goals quickly.


user
What is bond duration?


assistant
Duration is a time-weighted measurement of the average cash flow of an interest paying financial instrument. Bond investors use duration to measure the interest rate sensitivity of an asset. Type of duration calculations include Macaulay, Modified and Effective durations.