Calculate Macaulay Duration
The weighted average term to maturity of the cash flows from a bond.
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Interpretation:
If interest rates are #Yield#%, the Macaulay duration for a bond with a par value of $#PValue#, a maturity on #MDate#, and a coupon of #ARate#% will equal #Duration# years.So what does this tell you? Essentially, the initial cost of a bond paid on #SDate# will be repaid by the bond in #Duration# years should interest rates remain at #Yield#%.
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- Understanding the Time Value of Money - Find out how time really is money by learning to calculate present and future value.
- Advanced Bond Concepts - This detailed tutorial explains some of the more complex concepts and calculations you need to know for trading bonds, including bond pricing, yield, term structure of interest rates, duration, and much more.