The Macaulay duration indicates how much time it takes for an investor to recover the invested money in the bond through coupons and principal repayment. It measures the bond’s sensitivity to changes in interest rates. The metric factors in the weighted average number of years an investor must maintain a position in the bond, until the present value of the cash flows from the investment matches the amount paid for the bond.
This open-access Excel template is a useful tool for bankers, investment professionals, corporate finance practitioners, portfolio managers, and anyone preparing a corporate presentation.
Macaulay Duration is among the topics included in the Fixed Income module of the CFA Level 1 Curriculum. Gain valuable insights into the subject with our Fixed Income Investments course.
You can also explore other related templates such as—Modified Duration, Yield to Maturity (YTM), and Bond Valuation.
