Macaulay Duration: Definition, How It Works, Formula, and Example

Macaulay, Modified, and Effective Durations | CFA Level 1

Duration Definition and Its Use in Fixed Income Investing

ML461028 - Balicassiao (Balicassiao) - Macaulay Library

ML487450 - Ivory-billed Woodpecker (Northern) - Macaulay Library

orientation

MDURATION Function

You have purchased a bond for 973.02. The bond has a coupon rate of6.4%, pays interest annually, has a face value of $1,000, 4 years to maturity,and a yield to maturity of 7.2%. The bond's duration is 3.6481 years. Youexpect that interest rates will fall by .3% later today.i. Use the modified duration to find the approximate percentage changein the bond's price. Find the new price of the bond from this calculation.ii. Use your calculator to do the regular present value calculations to findthe bo

DURATION Function