Macaulay Duration, Modified Duration, and Effective Duration

In this article Iโ€™ll cover three quantities that go by the name of โ€œdurationโ€: Macaulay duration Modified duration Effective duration Iโ€™ll explain how each type of duration is calculated, the characteristics of each type of duration, the similarities and differences amongst the types of duration, and how they are used in practice. Types of Duration […]

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