\mˈakəlˌe͡ɪ djʊ͡əɹˈe͡ɪʃən], \mˈakəlˌeɪ djʊəɹˈeɪʃən], \m_ˈa_k_ə_l_ˌeɪ d_j_ʊə_ɹ_ˈeɪ_ʃ_ə_n]\
Definitions of MACAULAY DURATION
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In 1938 US academic Frederick Macaulay defined this tool. A fixed-income financial instrument's approximate measure of its price volatility and interest rate-sensitivity. An interest bearing bond is an instrument example. Calculated as weighted average time left until a series of cash flows from the instrument are received. The weights are the present cash flow value divided by the instrument's price. Also refer to modified duration.
By Henry Campbell Black
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- lunar calendar used by Moslems; dates from 622 AD (Hegira); beginning of the Moslem retrogresses through solar year completing cycle every 32 years lunar calendar used by Muslims; dates from 622 AD (Hegira); beginning of the Muslim year retrogresses through solar completing cycle every 32 years