What does "duration" mean?

1. (length of time) the length of time that something continues or lasts. 2. (until the end) the entire time until a situation, like a war or a project, is finished. 3. (financial sensitivity) a way to measure how much a bond's price changes when interest rates move.

How do you use "duration"?

Often follows 'for the' to indicate the entire length of an event. Commonly appears in the fixed phrase 'for the duration'. Used as a technical metric in investment banking and portfolio management.

duration

US //ˈdʊˈɹeɪʃən// UK //djɔːɹˈeɪʃən// du·ra·tion

1 length of time (n.)
B2 Upper Intermediate Academic

the length of time that something continues or lasts.

the period of time during which something continues to exist or occur. Uncountable in its general sense, though countable when referring to specific intervals.

Example

The duration of the flight is about three hours from London to Rome.

Example

The researchers monitored the duration of the symptoms to determine if the new medication significantly shortened the recovery period for the patients.

Usage

Often follows 'for the' to indicate the entire length of an event.
2 until the end (n.)
C1 Advanced Formal

the entire time until a situation, like a war or a project, is finished.

the full period of time until a current, often difficult, situation concludes. Usually used with the definite article.

Example

The family moved to the countryside for the duration of the war.

Example

The temporary restrictions remained in place for the duration of the emergency, only being lifted once the authorities declared the area safe.

Usage

Commonly appears in the fixed phrase 'for the duration'.
- entirety
- remainder

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3 financial sensitivity (n.)
C2 Proficiency Technical Finance

a way to measure how much a bond's price changes when interest rates move.

a measure of the sensitivity of the price of a fixed-income investment to a change in interest rates, expressed as a number of years.

Example

Investors look at duration to understand the risk of their bond portfolio.

Example

As interest rates began to climb, the fund manager reduced the portfolio's duration to protect the capital from significant price declines.

Usage

Used as a technical metric in investment banking and portfolio management.
- macaulay duration
- sensitivity

Origin

From Middle English duracioun, from late Old French duracion, from Medieval Latin dūrātiō.