Show that Macaulay-duration is a weighted average of times to maturity where the weights w n are
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Show that Macaulay-duration is a weighted average of times to maturity
where the weights wn are the fractions of the present value of the bond, represented by the n-th cashflow.
Transcribed Image Text:
Macaulay-duration= >, wn(Tn – t), Σν.Τ n=1
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Let P be the present value of the bond Then for each cash flow the ...View the full answer
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