The Importance of Macaulay's Duration, Lecture 022, Securities Investment 101, Video 00025

In this lecture we discuss the importance of Macaulay's Duration, particularly to anyone holding large bond portfolios. In passing, we show how and why zero coupon bonds have a duration identical to their maturities, and why the anticipated directional moves of interest rates are so critical to bond traders and pension fund managers.

We also introduce the Excel 'PV' (Present Value) function for pricing bonds.

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This MithrilMoney lecture was delivered by Andy Duncan, CQF.

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