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Understanding Macaulay Duration by swathi16021991 is a document available to read on EtoBox.
What is Understanding Macaulay Duration about?
The document discusses Macaulay Duration, which is defined as a weighted average of the times that cash flows from a bond occur. The weights are the present value of each cash flow divided by the total present value of all cash flows. This makes Macaulay Duration analogous to a balance point, as it represents the point at which the weighted times (or periods) would be in balance. The duration is directly related to term and inversely related to coupon rate, as these factors impact the relative weights of ea
- Author
- swathi16021991
- Language
- EN