A key assumption of Macaulay duration is that the yield curve is flat so that all cash flows are discounted at the same discount rate.

Name: A key assumption of Macaulay duration is that the yield curve is flat so that all cash flows are discounted at the same discount rate.
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Macaulay duration assumes a flat yield curve, meaning all cash flows from a bond are discounted at the same interest rate, simplifying the calculation of the bond's average time to receive its cash flows.

A Key Assumption of Macaulay Duration Is That the Yield