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Duration

Mmansoor9y ago
Good evening can u please explain "Duration measures the time it takes to recover half the present value of all future cash flows from the bond." where does this 'half' come from? thanks!!
John MoffatJohn MoffatTutor9y ago#1
It is only approximate, and proving it is about half is outside of the syllabus.
Mmansoor9y ago#2
thank u
John MoffatJohn MoffatTutor9y ago#3
You are welcome :-)
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