sir what ive read in kaplan book and other notes that macaulay duration is a investment appraisal technique but in your notes its related to bond valuation and time taken for it to return interest, i also could not get what gross redemption yield is and the calculation in example 4 chapter 8? is it basically cash flow generated by the bond, i couldnt find a lecture on chapter 8 also relating to bond valuation etc :(
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Macaulay Duration
9y ago#1The macauley duration can be used in investment appraisal and is exactly the same arithmetic as when it is used for bonds.
The gross redemption yield is the return to investors (the IRR of the pre tax flows) and is revision of Paper F9 - there are lectures on that in F9.
You are right in that there is currently no lecture on Chapter 8. It is on my list of new recordings to do as soon as I have the time.
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