notes/10 - Projects/CSC/Chapter 7/Duration.md

Higher duration = greater price sensitivity to interest rate changes.

Duration ties together everything we've covered about volatility — it's a single number that captures the combined effect of both maturity and coupon:

• Longer maturity → higher duration → more volatile
• Lower coupon → higher duration → more volatile
• Zero coupon bond → duration equals its full term (most volatile of all — no coupons to cushion rate changes)

That's why duration is so useful — instead of comparing maturity AND coupon separately, you just compare one number.