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duration

This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.

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March 2, 2021 at 7:42 am #612521
Jiya024
Member
- Topics: 168
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sir what is the correct definition duration: “weighted average time to recover the PV of a project” or ” time to recover HALF of the PV of o project”
at different places different definition are mentioned. which one is right? and why?
March 2, 2021 at 9:42 am #612569
John Moffat
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- Topics: 57
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The Macaulay duration measures the average time it takes for a bond to pay its interest and principal.
The project duration is a measure of the average time over which a project delivers it’s value.
The arithmetic is the same for both.
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