Bond Duration explained (calculation and concept) - part 2
Calculation explained about the Duration and Mduration formula of MS-Excel, Also include some fundamental concepts.
The Macaulay duration is 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.
very easy way to understand the duration concept in case on fixed income instruments like bonds
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@canitinsurana nice information upvotes and comments accepted just as i did!
@canitinsurana also anything funded should have a service life that exceeds bond duration. there's a reason we dont take a 10 year loan on a car. your blog make it more simple @canitinsurana
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