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Bond Duration- Dollar-Weighted Average | Macaulay Duration | Duration explained | FIN-Ed
In this video, I will explain Macaulay’s duration and its calculation using weighted average times to each coupon payment.
Macaulay’ duration equals the weighted average of the times to each coupon or principal payment made by the bond. The weight applied to each time to payment should be related to the importance of that payment to the value of the bond.
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