DURATION & RISK
Macaulay Duration
Measures the present-value-weighted average time to receive a bond's cash flows.
Formula
D_M = Σ[t × PV(CF_t)] / P
Variables: t payment time; PV present value; P bond price
What it means
Measures the present-value-weighted average time to receive a bond's cash flows.
Example
Cash flows further in the future receive greater time weights but are discounted before aggregation.
How to interpret it
This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.
Related Formulas
BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.