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Macaulay duration

NNaman1h ago

You mentioned it is the avg time by which we get half of our money back.

Then if the duration comes out be 3.33 years and i add up T1, T2, T3 & T4(0.33 part of it) PV's , why do i not get the total PV amount? I cant understand the logic behind the duration years with the wieghted pv logic.

I have never been more troubled by a topic more than this. Thank you for your support John.

NNaman1h ago#1

i do realise how silly it sounds to be expecting 3.33*X to be equal to X itself, but i cant for the love of god understand what this duration year signifies.

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