Sign up  |  Log in

Why is Macauley Duration a better measure of duration, especially in the context of ZCBs?

Why is Macauley Duration a better measure of duration, especially in the context of zero coupon bonds?

Kick start your CFA® Program prep with Top Instructors you’ll love and a course that offers free updates until you pass – We’ve got you covered.

Not sure what you mean. MacDur and ModDur measure different things (i.e. weighted average time to get your cash flows and a change in price for a change in YTM, respectively), or am I mistaken? And for a zero duration = maturity since you will only receive one cash flow at the end of the period.

Depends on your definition of “duration”

Be true