A time measure of a bond’s interest-rate sensitivity. It is calculated on the weighted average of the time periods over which a bond’s cash flows accrue to the bondholder. A bond with a high duration means the investor would need to wait a long period to receive the coupon payments and principal invested. The higher the duration, the more the fixed income security’s price would fall if there is a rise in interest rates, and visa versa. A bond’s duration will almost always be shorter than its maturity, with the exception of zero coupon bonds, for which maturity and duration are equal.