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Macaulay Duration
(redirected from Bond duration)

   Also found in: Wikipedia 0.03 sec.
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.

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


Macaulay duration
The weighted-average term to maturity of the cash flows from a bond, where the weights are the present value of the cash flow divided by the price.

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TO PROTECT AGAINST reinvestment and price risk, bond investments can be immunized; that is, the bond duration is equal to the investor's desired holding period.
The Ned Davis Research Allocation Fund is a diversified, registered investment company, whose proprietary quantitative asset allocation, stock selection and bond duration methodologies seek to beat a weighted composite benchmark consisting of 60% in the S&P 500 Index and 40% in the Lehman Long Term U.
The Ned Davis Research Allocation Fund is a diversified, registered investment company, whose proprietary quantitative asset allocation, stock selection and bond duration methodologies seek to beat a weighted composite benchmark consisting of 60% in the S&P 500 Index and 40% in the Lehman Long Term U.
 
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