Macaulay duration is the optimal holding period to immunize the interest rate risks, namely to make the reinvestment risk and selling price risk offset one another completely. True or false.
Added by Jacob C.
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Macaulay Duration is a measure of the weighted average time until a bond or fixed income security's cash flows are received. It is calculated by taking the present value of all cash flows, including coupon payments and the principal repayment, and weighting them Show more…
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