SHORT ANSWER
The core idea
Duration translates a change in yield into an approximate percentage change in bond price, making it one of the central measures of fixed-income interest-rate risk.
THE MECHANISM
What is happening underneath
A portfolio with twice the duration will generally experience roughly twice the price sensitivity for a small parallel yield move, all else equal.
MARKET INTERPRETATION
How investors should read it
Duration does not capture every risk, but it provides a common language for comparing rate exposure.
BONDSTATS TAKEAWAY
The same market move can carry different information depending on which maturity, issuer and risk premium is changing. Read the question together with the underlying concepts rather than treating one price move as a universal signal.
RELATED CONCEPTS
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