Dictionary
Thesaurus
Encyclopedia
Translator
Web

Macaulay Duration

 - 1 dictionary result
Financial Dictionary

Macaulay Duration

The weighted-average term to maturity of the cash flows from a bond. The weight of each cash flow is determined by dividing the present value of the cash flow by the price.

Investopedia Commentary

The metric is named after its creator, Frederick Macaulay. Macaulay duration is frequently used by portfolio managers who use an immunization strategy.

Related Links

Advanced Bond Concepts

See also: Bond, Effective Duration, Immunization, Key Rate Duration, Modified Duration

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
Cite This Source
Search another word or see Macaulay Duration on Thesaurus | Reference
FacebookTwitterFollow us: