Macaulay duration

• The 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.

• Is the present value of all cash flows, both principal and interest, weighted by time. It is a measurement expressed in years which is generally less than the stated maturity. An exception occurs for zero coupon bonds.


Follow this link for all the terms related to ratio.

 Embedded terms in definition
Cash flow
Coupon bond
Present value
Stated maturity
Term to maturity
Zero coupon bond
 Related Terms
 Dollar duration
Duration gap
Duration mismatch
Effective duration
Modified duration
Mortgage duration
Negative duration
Option adjusted duration

<< M3 Macro hedge >>

Managing Your Expenses on a Fixed or Reduced Income: Once you've retired, you finally have the opportunity to work at your dream job - keeping yourself happy. It's your chance to visit places you've always wanted to see, take up a new hobby and spend more time with your family and friends. But to be successful at this new position, you've got to make the most of your income and investments. Here are suggestions. More...

People of mediocre ability sometimes achieve outstanding success because they don't know when to quit. Most men succeed because they are determined to. George Herbert Allen


Copyright 2009-2018 GVC. All rights reserved.