#bonds #duration #finance
For most practical calculations, the Macaulay duration is calculated using the yield to maturity
If you want to change selection, open document below and click on "Move attachment"

Bond duration - Wikipedia, the free encyclopedia
ey are and the final large circle including the final principal repayment. If these circles were put on a balance beam, the fulcrum of the beam would represent the weighted average distance (time to payment), which is 1.78 years in this case. <span>For most practical calculations, the Macaulay duration is calculated using the yield to maturity to calculate the : (2) (3) where: indexes the cash flows, is the present value of the th cash payment from an asset, is the cash flow of the th payment from an asset, is the y