Bond Duration explained (calculation and concept) - part 2

in excel •  6 years ago 

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.

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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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