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Approximate Macaulay Duration Formula

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Approximate Macaulay Duration is a measure of the weighted average time until a bond's cash flows are received. Check FAQs

AMYD = AMD \cdot (1 + R)

AMYD - Approximate Macaulay Duration?AMD - Approximate Modified Duration?R - Rate of Interest?

Approximate Macaulay Duration Example

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Here is how the Approximate Macaulay Duration equation looks like with Values.

Here is how the Approximate Macaulay Duration equation looks like with Units.

Here is how the Approximate Macaulay Duration equation looks like.

4.445 = 1.27 \cdot (1 + 2.5)

4.445 = 1.27 \cdot (1 + 2.5)

4.445 = 1.27 \cdot (1 + 2.5)

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Approximate Macaulay Duration Solution

Follow our step by step solution on how to calculate Approximate Macaulay Duration?

FIRST Step Consider the formula

AMYD = AMD \cdot (1 + R)

Next Step Substitute values of Variables

∴

AMYD = 1.27 \cdot (1 + 2.5)

Next Step Prepare to Evaluate

∴

AMYD = 1.27 \cdot (1 + 2.5)

LAST Step Evaluate

∴

AMYD = 4.445

Approximate Macaulay Duration Formula Elements

Variables

Approximate Macaulay Duration

Approximate Macaulay Duration is a measure of the weighted average time until a bond's cash flows are received.

Symbol: AMYD

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Approximate Macaulay Duration

Approximate Modified Duration

Approximate Modified Duration is a measure of a bond's price sensitivity to changes in interest rates, reflecting how much the bond's price will change for a 1% change in yield.

Symbol: AMD

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Approximate Modified Duration

Rate of Interest

Rate of Interest is the annual interest payment made by the bond issuer to the bondholder, expressed as a percentage of the bond's face value.

Symbol: R

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Rate of Interest

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Go Share Exchange Ratio

ER = \frac{OPTS}{ASP}

How to Evaluate Approximate Macaulay Duration?

Approximate Macaulay Duration evaluator uses Approximate Macaulay Duration = Approximate Modified Duration*(1+Rate of Interest) to evaluate the Approximate Macaulay Duration, Approximate Macaulay Duration provides a quick estimate of the duration of a bond without the need for detailed cash flow analysis and discounting. Approximate Macaulay Duration is denoted by AMYD symbol.

How to evaluate Approximate Macaulay Duration using this online evaluator? To use this online evaluator for Approximate Macaulay Duration, enter Approximate Modified Duration (AMD) & Rate of Interest (R) and hit the calculate button.

FAQs on Approximate Macaulay Duration

What is the formula to find Approximate Macaulay Duration?

The formula of Approximate Macaulay Duration is expressed as Approximate Macaulay Duration = Approximate Modified Duration*(1+Rate of Interest). Here is an example- 4.445 = 1.27*(1+2.5).

How to calculate Approximate Macaulay Duration?

With Approximate Modified Duration (AMD) & Rate of Interest (R) we can find Approximate Macaulay Duration using the formula - Approximate Macaulay Duration = Approximate Modified Duration*(1+Rate of Interest).

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Approximate Macaulay Duration Formula

Approximate Macaulay Duration Example

Approximate Macaulay Duration Solution

Approximate Macaulay Duration Formula Elements

Other formulas in Strategic Financial Management category

How to Evaluate Approximate Macaulay Duration?

FAQs on Approximate Macaulay Duration

Variable Name