What is the meaning of Macaulay Duration?

1. A measure of the sensitivity of a financial instrument's value to a change in its yield.' Macaulay Duration' is an overestimate, and Modified Duration (q. V.) is a more precise measure. 2. The weighted average of time until a financial instrument pays its cash flows. Each weight is proportional to the present value of the associated cash flow. 3. Modified Duration (q. V.), times 1 + y/n, where y is the yield and n is the number of coupon payments per year.

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APABarry Goldsmith. (2010). macaulay duration. Retrieved September 29, 2026, from http://smartdefine.org/macaulay_duration/definitions/1157643
ChicagoBarry Goldsmith. 2010. "macaulay duration" http://smartdefine.org/macaulay_duration/definitions/1157643 (accessed September 29, 2026).
HarvardBarry Goldsmith 2010, macaulay duration, Smart Define, viewed 29 September, 2026, <http://smartdefine.org/macaulay_duration/definitions/1157643>.
MLABarry Goldsmith. "macaulay duration" 21 October 2010. Web. 29 September 2026. <http://smartdefine.org/macaulay_duration/definitions/1157643>