Duration refers to the length of time that something lasts. It can apply to various contexts, such as music, where it indicates how long a note or a piece is played, or in project management, where it defines the time required to complete a task. Understanding duration helps in planning and scheduling activities effectively. In finance, duration measures the sensitivity of a bond's price to changes in interest rates. It reflects the average time it takes for an investor to receive cash flows from the bond. This concept is crucial for investors to assess risk and make informed decisions regarding their investments in bonds and other fixed-income securities.