Macaulay Duration
Macaulay duration is the weighted-average time to a bond's cash flows, expressed in years, with weights equal to the present value of each cash flow divided by the bond's price.
Example: For a hypothetical 5-year bond with fixed annual coupons, Macaulay duration would reflect the weighted average timing of those cash flows and is typically a number near the end of year 4, depending on coupon size and yield.
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