Macaulay durationThe weighted-average term to maturity of the cash flows from the bond, where the weights are the present value of the cash flow divided by the price.
Macaulay duration, named for Frederick Macaulay who introduced the concept, is the weighted average maturity of cash flows. Consider some set of fixed cash flows. The present value of these cash flows is: ...
Macaulay duration
The weighted-average term to maturity of the cash flows from a bond, where the weights are the present value of the cash flow divided by the price.
The ratio of Macaulay duration to (1 + y), where y = the bond yield. Modified duration is inversely related to the approximate percentage change in price for a given change in yield.
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See GoCurrency World Currencies Page & Currency Converter Macaulay Duration In 1938, Frederick R. Macaulay defined Duration as the total weighted average...
Macaulay Duration 1. A measure of the sensitivity of a financial instrument's value to a change in its yield. Macaulay Duration is an overestimate, and Modified Duration (q.v.) is a more precise measure. 2.
Modified duration is a measure of Macaulay duration, which was named for Frederick Macaulay.
 See also: Average, Interest Rate, Interest, Future, Short
  
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