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Questions tagged [duration]

Duration measures the amount by which price varies with respect to changes in yield.

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Active Bond Funds - Interest Rate Swaps

I am a long time investor in an active Australian Bond fund (set & forget type of thing) but lately I have been doing a lot of research and I have realised that bond managers use a lot of ...
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Simpler way of calculating duration for bonds?

So the question is: Find the duration of a 6% coupon bond making annual coupon payments if it has 3 years until maturity and has a yield to maturity of 6%. What is the duration if the yield to ...
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Calculating Compounded Salary Increase Percentage with Multiple Years and Durations

I am trying to calculate the cumulative salary increase across 10 years. The issue is that some union members received raises multiple times a year, and other years they received no raises. I am ...
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646 views

Why is the Macaulay Duration recalculated after each coupon payment?

I'm trying to understand why Macaulay Duration is recalculated after each coupon payment. I can see why I want to know the duration when purchasing a bond - to figure out how long till I recoup my ...
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What is the difference between fixed-income duration and equity duration?

I noticed this question, How to determine duration of a common stock whose dividends grow in perpetuity? I am familiar with the concept of duration for bonds, but not for common stock (actually, it is ...
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How to determine duration of a common stock whose dividends grow in perpetuity?

What is the duration of a common stock whose dividends are expected to grow at a constant rate in perpetuity? Specifically, how can I compute this, since the dividends will grow forever? Update: Ok, ...
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Choosing the duration of a loan, how the monthly payments evolve in function of the loan term?

I would like to visually discover how the monthly repayments of a given loan (for a given amount ; taking about a fixed rate loan) evolve in function of the total duration of the loan. I assume it is ...