I'm currently studying for a pure maths degree, and so have no background knowledge of bonds. I'm reading through some material regarding actuarial work, and came across the following definition of duration which I cannot wrap my head around:
The duration is the time before the average payments are made of the bonds held.
I've been googling the definition of duration, and understand it to be some sort of measure of the sensitivity of the bonds value to changes in the interest rates. Could someone give me a simple explanation of what the duration is, and the meaning of the above (what are the average payments?) Thanks!